The Nigerian stock market has started 2023 on positive note with investors recording N188 billion gains at the opening session on Tuesday.
Analysis of the trading activity showed that the value of all listed equities (market capitalisation) rose by 0.67 percent to close at N28.103 trillion from N27.915 trillion.
The All Share Index (ASI) also rose by the same margin to close at N51,595.66 points from 51,251.06 points.
The positive performance was driven primarily by gains in tier-1 banks and other big capitalised stocks with BUA Foods Plc (10%), followed by Access Bank Plc (3.53%), FBN Holdings Plc (3.21%) and GTBank Plc (1.09%).
The sectoral performance for the day was largely positive. With the exception of the oil & gas sector that recorded a 0.02 percent decline, three sectors – consumer goods, banking, and insurance – advanced by 3.6 percent, 2.6 percent, and 2.55 percent respectively, while the industrial goods sector closed flat.
A total of 22 stocks appreciated in price while nine recorded price decline.
In their projections for the new week, analysts at United Capital said: “We anticipate robust market activity and bullish sentiments to continue. The usual January momentum is likely to dominate particularly as the yield environment appears to be shifting downwards.”
Speaking in the same vein, analysts at Cordros Capital had said: “In the first trading week of the new year, we expect the bulls to retain their dominance in the local bourse as buying activities due to positioning for 2022 full year earnings announcements and accompanying dividend declarations will likely outweigh profit-taking activities.”
Commenting, analysts at Cowry Asset Management, said: “Looking ahead, the current trend is expected to continue on profit-taking and portfolio rebalancing ahead of the next earning season just as the market pullbacks add more strength to the upside potential of the index as we head into the new trading year. However, we continue to advise investors to trade on companies’ stocks with sound fundamentals.”