The Nigerian Exchange Ltd. started the week on a positive note, with market capitalisation rising by N5.1 trillion, a 4.36 per cent gain on Monday.

The performance was driven by increased interest in high-capitalised equities such as ABC Transport, Beta Glass, Ikeja Hotel, Mc Nicholas, Oando, and 52 others.

Specifically, the market capitalisation, which increased to N122.129 trillion at the opening, closed at N117.027 trillion. Similarly, the All-Share Index (ASI) edged up by 7,953.36 points or 4.36 per cent, closing at 190,266.44, compared to 182,313.08 recorded on Friday.

Also, the market breadth closed positive with 57 gainers and 27 losers. Beta Glass, Oando, Ikeja Hotel, Mc Nicholas and ABC Transport led the gainers’ chart by 10 per cent each, finishing at N453.20, N44, N41.80, N8.47 and N8.25 per share, respectively.

On the flip side, RT Briscoe led losers’ chart by 9.99 per cent, settling at N15.68, Deap Capital trailed by 9.91 per cent, closing at N7.64, while Caverton Offshore Support Group shed by 9.62 per cent, ending the session at N7.05 per share. Guinea Insurance dipped by 9.27 per cent, finishing at N1.37, and Tantalizer dropped by 8.11 per cent, closing at N5.10 per share.

Analysis of the market revealed an overall increase in volume, value, and deals. A total of 1.1 billion shares, worth N64 billion, were exchanged across 64,821 transactions, compared to 936.4 million shares valued at N52.7 billion traded in 50,068 deals. Access Corporation recorded the highest volume of 86.7 million traded shares.

Commenting on the development, David Adonri, vice-president of Highcap Securities Ltd., described Monday’s surge as one of the most significant rallies recorded in the year.

“We witnessed a very big rally today, perhaps the biggest since the beginning of the year. The Oil and Gas Index appreciated by over four per cent, and most of the stocks that led the gainers’ chart were highly capitalised equities. There were substantial movements in those large-cap stocks. It was truly a day of massive rally in the market,” Mr Adonri said

He, however, noted that the exact trigger for the rally was not immediately clear, as there were no new listings to account for the surge.

Mr Adonri suggested that external factors might have influenced investor sentiment, particularly tensions in the Middle East involving the United States and Iran, as well as concerns over a possible disruption in the Strait of Hormuz.

“Such developments could lead to a spike in crude oil prices. Investors may be taking proactive positions in anticipation of a significant rise in oil prices,” he said.

Mr Adonri also observed that the latest inflation figures released by the National Bureau of Statistics showed an uptick to about 15 per cent from around 14 per cent in December, indicating that domestic macroeconomic data was unlikely to have driven the rally.

“Given the inflation spike, we can reasonably rule that out as a catalyst. The most plausible explanation appears to be external factors,” Mr Adonri said. 

(NAN)