Bargain hunting in 28 stocks lifts capitalisation by N16 billion

The Nigerian Exchange Limited (NGX) resumed trading for the week in an upbeat yesterday, occasioned by renewed bargain hunting in Beta Glass and 28 stocks, as market capitalisation gained N16 billion.

At the close of transactions yesterday, the All-Share Index appreciated by 24.99 points, representing a gain of 0.03 per cent to close at 97,747.27 points. Market capitalisation rose by N16 billion to close at N59.231 trillion.

The upturn was driven by price appreciation in large and medium-capitalised stocks amongst which are Beta Glass, Lafarge Africa, Oando, Eunisell Interlinked and Nigerian Aviation Handling Company (NAHCO).

On market outlook, analysts at United Capital Plc said: “The equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the high interest rates in the fixed-income and money markets, we expect some bearish undertone to persist in the equities market as fixed-income biased investors take advantage of the high yields in the fixed-income space.

“Nevertheless, the bulls will remain incentivized to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market.”

Also, market breadth closed positive, as 29 stocks gained relative to 22 losers. John Holt emerged as the highest price gainer of 9.97 per cent to close at N8.49 kobo, while Eunisell Interlinked and Beta Glass followed with a gain of 9.92 per cent each to close at N13.18 kobo and N49.85 kobo respectively.

Lafarge Africa increased by 9.52 per cent to close at N46, while Tantalizer added 9.33 per cent to close at 82 kobo.On the other hand, MeCure Industries led the losers’ chart with 9.65 per cent to close at N11.70 kobo. The Initiates Plc (TIP) followed with a decline of 9.09 per cent to close at N2.30 kobo while Thomas Wyatt Nigeria shed 7.83 per cent to close at N3.65 kobo.

University Press depreciated by 7.83 per cent to close at N3.65, while Champion Breweries was down by 6.88 per cent to close at N3.52 kobo. The total volume traded increased by 40.03 per cent to 413.35 million units, valued at N5.336 billion, and exchanged in 9,004 deals.

Transactions in the shares of Japaul Gold & Ventures led the activity with 179.098 million shares worth N379.739 million. Consolidated Hallmark Holdings followed with an account of 36.84 million shares valued at N75.190 million.

Access Holdings traded 31.658 million shares valued at N775.547 million. United Bank for Africa (UBA) traded 17.344 million shares worth N580.551 million, while United Capital traded 10.176 million shares worth N171.305 million.