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Nigerian Stock Market Continues Bullish Run as Investors Favour Zenith Bank

Strategic Insights

— 2 min read

The Nigerian Stock Market showed no signs of slowing down, with investors selling 360 million shares of Zenith Bank Plc valued at N16.9 billion last week. This surge in activity was led by Tier-1 lender Zenith Bank, which outperformed all other stocks by volume and value, helping to lift the banking index and extend the stock market's bullish run. Recent insider purchases by founder and Chairman Jim Ovia and Group Managing Director Dr.AdaoraUmeoji were seen as a strong vote of confidence in the bank's long-term prospects, with Ovia's investment vehicle Quantum Zenith Securities acquiring 1.45 million shares valued at over N68 million, and Umeoji purchasing a total of 68.75 million shares worth over N3.3 billion.

Key Takeaways:

  • The NGX All-Share Index gained 2.3 per cent to close at 118,138.2 points, improving the year-to-date return to 14.8 per cent.
  • Market capitalisation advanced by N1.68 trillion to N74.5 trillion, with average volume and value traded expanding 4.3 per cent and 36.6 per cent to 683.7 million units and N16.9 billion, respectively.
  • Zenith Bank was the top traded stock by volume, accounting for 360.6 million units, while UBA and AccessHoldco ranked second and third, with 241.5 million units and 344.9 million units, respectively.
  • The top traded stocks by value were Zenith Bank (N16.9 billion), GTCO (N15.0 billion), and UBA (N7.5 billion).
  • The fixed-income market closed last week on a bullish note, with investors' demand in the primary market significantly strong, especially for long-dated bills.
  • Meristem Securities Limited noted a gradual increase in investors' confidence in Nigeria's economy, driven by the gradual increase in oil prices and relative stability of the economy.

Statistics:

  • 360 million shares of Zenith Bank Plc were sold at N16.9 billion.
  • NGX All-Share Index gained 2.3 per cent to close at 118,138.2 points.
  • Market capitalisation advanced by N1.68 trillion to N74.5 trillion.
  • Average volume traded expanded 4.3 per cent to 683.7 million units.
  • Average value traded expanded 36.6 per cent to N16.9 billion.
  • Oil prices increased, driving investor confidence in the economy.
  • In the primary market, total offer was N162.0 billion, with investors' demand reaching N1.23 trillion.

Sources:

  • "Nigerian Stock Market Continues Bullish Run as Investors Favour Zenith Bank" by [Unknown Author], Source: [Nigerian Exchange Limited (NGX)].
  • "Market Wrap: NGX-ASI Extends to Fourth Consecutive Week of Gains" by Afrinvest Research, Source: [Afrinvest Research].
  • "Weekly Update: Fixed Income Market Closes on a Bullish Note" by Meristem Securities Limited, Source: [Meristem Securities Limited].
  • "Central Bank of Nigeria (CBN) Auctions N162.0 billion in T-bills", Source: [CBN].
  • "Central Bank of Nigeria (CBN) Conducts OMO Auction", Source: [CBN].

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