As gains in BUA Cement, UBN others lift indices by N63b
Institutional investors from the United States of America under the Institutional Investor Network have expressed interest in allocating their capital and exploring more direct investment opportunities in the Nigerian capital market.

This was the subject of discussion at an engagement between Nigerian Exchange Limited (NGX) and a delegation from the U.S. facilitated by Chapel Hill Denham.

The delegates consist of United States Agency for International Development (USAID), Prosper Africa and Power Africa. During the engagement, which was marked by a Closing Gong Ceremony, the Chairman, Nigerian Exchange Group Plc (NGX Group), Dr. Umaru Kwairanga called for a deeper collaboration between the U.S. and Nigeria.

He noted that the NGX Group has been engaging the government in various areas of market development, especially in the removal of capital controls; legislation to enhance attractiveness of listings, pension reforms, policymaking to facilitate dollar-denominated market transactions, and the establishment of a private market. “Significant opportunities for mutual economic expansion abound between the United States and Nigeria. NGX Group is positioned to facilitate more investment inflows.”

Chief Executive Officer, NGX, Temi Popoola, said: “We are working hand-in-hand with government to create an attractive environment for listings and also on product innovation that can creatively channel more funds into the market.

Senior Investment Advisor, Prosper Africa, Cameron Khowsroshahi, who led the US delegation to Nigeria emphasised the U.S. institutional investors’ readiness to work with Nigerian institutional investors including pension funds to explore more avenues to invest in the Nigerian capital market.

Meanwhile, following gains recorded by many bluechip stocks, especially BUA Cement and Union Bank of Nigeria (UBN), the Nigeria equities market rebounded yesterday as market capitalisation increased by N63 billion.

At the close of transactions yesterday, market capitalisation of listed equities appreciated by 0.2 per cent to N36.864 trillion from 36.801 trillion reported the previous day. The All Share Index (ASI) also rise by 115.87 basis points to 67100.49 points from 66984.62 points traded on Tuesday.

Yesterday’s uptrend was impacted by gains recorded in medium and large capitalised stocks, amongst which are; BUA Cement, UBN, Thomas Wyatts, TransNational Corporation of Nigeria, Nigerian Aviation Handling Company, Flourmills and United Bank for Africa (UBA).

As measured by market breadth, market sentiment was positive, as 18 stocks gained, while 17 others constituted the losers’ chart.

Analysts at Vetiva Dealings and Brokerage, said: “Six out of today’s 17 decliners were banking stocks, as the sector experience mild sell-offs, while dominating activity chart. We are likely to see slight rebounds in that space tomorrow.”

Analysts at Afrinvest, said: “Investors sentiment, as measured by market breadth, improved to 0.18x from 0.05x in the prior session as 31 stocks advanced, 19 declined, while 67 closed flat. Tomorrow, we expect modest gains on the local barring any negative catalyst.”

On the price movement chart, Thomas Wyatts led gainers’ table during the day, shedding 9.81 per cent to N2.35 kobo while, Daar Communication followed with a gain of 9.52 per cent to close at 23 kobo, Cornerstones Insurance added 6.45 per cent to close at N1.65 kobo, Transnational Corporation of Nigeria increased by 5.41 per cent to close at N6.43 kobo, UBN added 5.30 per cent to N6.95 kobo.

However, Omatek topped losers’ chart, dropping 8.33 per cent to close at 44 kobo, Oando Plc trailed with a drop of 8.08 per cent to close at N9.10 kobo. African prudential fell by 7.80 per cent to close at N6.50 kobo, Caverton Business Solutions dipped by 6.92 per cent to close at N1.48 kobo. Chi Plc was down by 6.25 per cent to close at N1.05 kobo.

On the activity chart, volume of transactions increased as investors exchanged 410.320 million shares valued at N4.456 billion in 5637 deals against 257.423 million shares worth N7.799 Billion in 6498 deals.

Neimeth international Pharmaceutical led market activities with 163.200 million shares valued at N259.494 million, AccessCorp followed with account of 38.974 million shares valued at N611.819 million, Zenith Bank traded 32.273 million shares cost N101.858 million Fidelity Bank exchanged 23.523 million shares worth N194.178 million while UBA traded 19.822 million shares valued at N341.185 million.