The Nigerian stock market continued its bullish run on Thursday, as the market capitalisation surpassed the historic N40tn mark for the first time ever. The market was driven by strong performance in the banking sector, which accounted for more than half of the total value traded.
Banking Stocks Shine as Investors Seek Value
The banking sector was the star performer on Thursday, as investors sought value in the undervalued stocks. The sector index rose by 3.24%, outperforming the benchmark All-Share Index, which gained 0.21%. The banking sector also contributed 54.5% of the total value traded, amounting to N3.96bn.
Some of the banking stocks that recorded significant gains include Access Bank, which rose by 9.09% to close at N22.85 per share, Fidelity Bank, which gained 8.33% to close at N9.40 per share, and FCMB, which appreciated by 7.69% to close at N7.00 per share.
The banking sector has been one of the most resilient sectors in the Nigerian stock market, despite the challenging economic environment and regulatory headwinds. The sector has recorded impressive earnings growth, improved asset quality, and robust capital adequacy ratios. The sector has also benefited from the increased adoption of digital banking services, which has boosted its revenue and efficiency.
Market Capitalisation Crosses N40tn Milestone
The sustained rally in the stock market pushed the market capitalisation to a new record high of N40.07tn on Thursday, representing a 1.08% increase from the previous day. The market capitalisation has grown by N1.42tn or 3.67% since the beginning of the month, and by N10.42tn or 35.15% since the start of the year.
The market capitalisation is the total value of all the listed equities on the Nigerian Exchange Limited. It reflects the overall performance and sentiment of the market, as well as the wealth creation potential for investors. The market capitalisation is also an indicator of the size and attractiveness of the Nigerian stock market to local and foreign investors.
The Nigerian stock market has been one of the best performing markets in the world in 2023, as it has recovered from the impact of the Covid-19 pandemic and the recession. The market has been supported by the improved macroeconomic outlook, the low-interest rate environment, the positive corporate earnings, and the increased participation of domestic investors.
Other Sectors Also Record Gains
The banking sector was not the only sector that recorded gains on Thursday, as other sectors also contributed to the positive market sentiment. The consumer goods sector rose by 0.77%, the industrial goods sector gained 0.51%, and the oil and gas sector increased by 0.28%. The only sector that recorded a loss was the insurance sector, which declined by 0.18%.
Some of the stocks that performed well in other sectors include Dangote Sugar, which rose by 6.67% to close at N24.00 per share, Lafarge Africa, which gained 4.76% to close at N44.00 per share, and Oando, which appreciated by 3.70% to close at N5.60 per share.
The Nigerian stock market has witnessed a broad-based rally in recent weeks, as investors have diversified their portfolios across different sectors and industries. The market has also seen increased activity from institutional investors, such as pension funds and mutual funds, which have boosted the liquidity and depth of the market.
