The Nigerian Exchange (NGX) Limited All-Share Index (ASI) rose 0.2 per cent to close higher at 38,548.24 as the market extended its recovery for the second day.
The appreciation was supported by gains recorded by MTN Nigeria Plc, FCMB Group Plc and Lafarge Africa Plc. Market capitalisation added N34.3 billion to close at N20.1 trillion. Similarly, the volume and value of trading improved 59.1 per cent and 41.2 per cent to 249.7 million shares and N1.9 billion respectively.
The most traded stocks by volume were Sovereign Trust Insurance Plc (35.5 million shares), FCMB Group Plc (22.7 million shares), and AXA Mansard Insurance Plc (16.9 million shares) while Stanbic IBTC Holdings Plc (N182.9 million), Lafarge Africa Plc (N100.3 million), and MTN Nigeria Plc(N99.2 million) led by value.
A total of 19 stocks appreciated led by University Press Plc with 10 per cent, trailed by Berger Paints Nigeria Plc with 9.8 per cent. John Holt Plc gained 9.4 per cent.
Conversely, 17 stocks declined led by CWG Plc with 9.6 per cent, trailed by Union Bank of Nigeria Plc with 6.7 per cent. Sovereign Trust Insurance Plc and Courtville Business Solutions Plc shed 6.6 per cent and 4.7 per cent respectively.
Analysts at InvestData Consulting had on Wednesday said the undervalued state of the market and rising dividend yields had made equities more attractive, with most of the low-priced stocks outperforming the prevailing inflation rate, making equity space an irresistible hedge for investors against inflation.
"The low Price/Earnings ratio of the market, owing to the stronger corporate numbers, ahead of the half-year earnings season and interim dividend payments, presents huge opportunities for discerning investors and traders to build wealth," they said.
According to them, sector rotation will continue in June, as sectors and companies benefiting from the inflationary pressure and rising yields may likely post better numbers.
"The trading pattern we saw in the previous month may continue, given that many companies have June as mark-down and payment dates, end of the quarter for fund managers window dressing, and repositioning of portfolios ahead of Q2 numbers and others. This calls for a change in investor perception and trading strategies to stay ahead of the market, thereby ensuring that you are among the few who make money from equities' trading, which is possible through regular learning of technical analysis and candlestick pattern," they said.