Bulls sustain dominance as index gains N18 billion
The bulls maintained dominance on the equities sector of the Nigerian Stock Exchange (NSE), as more blue-chip stocks appreciated in price, resulting in a further rise in market capitalisation by N18 billion.
Yesterday, the All-Share Index (ASI) increased by 33.28 absolute or 0.13 per cent to close at 25,204.60 points.
Similarly, the overall market capitalisation gained N18 billion, 0.14 per cent rise to close at N13.149 trillion.
The upturn was impacted by gains recorded in large and medium value stocks, including Chemical and Allied Products (CAP), Stanbic IBTC Holdings, International Breweries, GlaxoSmithKline Consumer Nigeria, and Fidson Healthcare.
Analysts linked the seeming resilience of the Exchange in recent times to improved corporate earnings reports, buying interests in defensive high cap stocks, and interim dividend paying equities with yields relatively higher than other investment windows.
However, they pointed out that Nigeria’s rising inflation remains a potent threat to investors’ confidence.
Specifically, analysts at Afrinvest Limited said: “We expect the equities market to close the week with slight gains.”
Vetiva Capital said: “With the absence of any significant sell pressure in mid/large cap stocks, the domestic bourse maintained its positive movement, as investors again cherry-picked attractive
counters across sectors.
“We expect no deviation from this trading pattern tomorrow, though the possibility of profit taking on recent gains cannot be overruled.”
Market sentiment, as measured by the market breadth, was positive, as 17 stocks gained relative to 11 losers. International Breweries recorded the highest price gain of 10 per cent to close at N3.30 per share.
Cutix followed with 9.71 per cent to close at N1.92, and Neimeth International Pharmaceuticals rose 9.55 per cent to close at N1.95, per share.
Livestock Feeds advanced 9.09 per cent to close at 60 kobo, while Fidson Healthcare gained 6.74 per cent to close at N3.96, per share.
On the other hand, Studio Press Nigeria led the losers’ chart by 9.60 per cent to close at N1.79, per share. UACN Property Development Company followed with 9.47 per cent to close at 86 kobo, and Associated Bus Company lost 8.51 per cent to close at 43 kobo, per share.
Royal Exchange fell 7.14 per cent to close at 26 kobo, and Japaul Oil and Maritime Services shed 4.76 per cent to close at 20 kobo, per share.
However, the total volume traded declined marginally by 0.26 per cent to 179.549 million shares worth N2.526 billion, traded in 3,055 deals.
Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 35.479 million shares valued at N21.470 million. Guaranty Trust Bank followed with 29.938 million shares worth N755.908 million, and Lasaco Assurance traded 11.864 million shares valued at N3.505 million.
FBN Holdings (FBNH) traded 9.975 million shares at 49.931 million, while Zenith Bank transacted 9.648 million shares worth N163.463 million.