Nigerian equities rose 0.38% in mid-week trading to reach their highest level in more than eight months, just before of the third quarter earnings season, which is anticipated to start any day now.
At the close of trade, the all-share index had risen 154.23 points to 41,051.19 index points, while market capitalization had risen to N21.4 trillion. The index is up 1.94% year to date.
Nigerian Stocks are regaining their footing, thanks to a more favorable investing environment, which has seen the market return to a solid year-to-date return since last Tuesday.
That confidence is based on a never-ending demand for FBN Holdings shares, one of four Nigerian banks named among the five cheapest equities in Africa by Bloomberg at the end of August.
Since the beginning of October, the stock has dominated trade in all but two trading days, returning 32.3%.
Market pundits expect the bullish trend to continue as investors look for bargains and prepare for the Q3 earnings season in the stock market.
FBN Holdings, GTCO, UBA, Access, and Champion Breweries led the advance on Wednesday, with a couple of mid-cap companies offering additional assistance.
A total of 446.2 million shares worth N4.5 billion were traded in 4,704 transactions.
FBN Holdings was the most active stock, with 741 trades totaling 148.4 million units worth N1.7 billion.
In 30 trades, Universal Insurance sold 46.2 million shares at a price of N9.7 million. In 193 trades, ETI exchanged 42.6 million shares worth N316.1 million.
Market breadth, which is typically used to gauge investor mood toward trading, was favorable, with 29 gainers outnumbering 14 laggards.
Top 5 gainers
Transcorp Hotels was the best performer, rising 9.94 % to close at N5.97. Champion Breweries rose 9.88 % to N2.78 in Wednesday’s trading.
The stock of Consolidated Hallmark increased by 9.09 % to N0.60. Okomu Oil climbed to N125, gaining 8.23% in the process. Japaul Gold rounded out the top five, rising 6.67 % to N0.48.
Top 5 losers
The worst-performing stock was FTN Cocoa, which fell 8% to settle at N0.46. ABC Transport dropped 5.88 % to N0.32.
Regal Insurance’s share price dropped to N0.38, indicating a 5% drop in value. Ikeja Hotel dropped 4.55 % to N1.05. Universal Insurance ended the day at N0.21, down 4.55 %.