Confidence returns to capital market as capitalisation leaps by N1.2 trillion

Investors’ confidence that the new government policies would translate to increased value added to the capital market triggered an unprecedented rally in the equities sector of the Nigerian Exchange Limited (NGX), yesterday, as heavy transactions in the shares of many highly-capitalised stocks, especially Airtel Africa and Okomu Oil lifted market capitalisation by N1.2 trillion.

The All Share Index (ASI) gained by 2,232.58 points, representing a growth of 3.99 per cent to close at 58,163.55 points. Also, market capitalisation gained N1.215 trillion to close at N31.67 trillion.

The upturn was boosted by gains recorded in medium and large capitalised stocks, amongst which are Airtel Africa, Okomuoil, Presco, MTN Nigeria, BUA Foods, Dangote Cement, MRS Oil Nigeria and Nigerian Breweries.

Analysts linked the improved performance to the successful inauguration and conclusion of the 10th Assembly, as well as the suspension of the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, adding that this has raised investors’ hope that the reforms of the current administration will ultimately improve market liquidity.

Analysts at Cordros Securities Limited said: “The market performance was impressive as investors reacted positively to the policy signals and planned financial sector reforms from the new administration.

On the price movement chart, 61 stocks appreciated, while 13 constituted the losers’ chart. Guaranty Trust Holding Company (GTCO), Lasaco Assurance, NASCON Allied Industries and Zenith Bank recorded the highest price gain of 10 per cent each to close at N14.30, N30.80, N1.98, N17.05 and N30.80 respectively.

Ecobank TransNational Incorporated (ETI) gained 9.92 per cent to close at N13.85 kobo. Jaiz Bank appreciated by 9.77 per cent to close at N1.46 kobo. Unity Bank increased by 9.72 per cent to close at 79 kobo. FTN Cocoa advanced by 9.68 per cent to close at N1.02 kobo. Sterling Bank also improved by 9.55 per cent to close at N2.50 kobo.

On the other hand, Ellah Lakes and John Holt led the losers’ chart by 10 per cent each to close at N3.69 and N1.26 respectively, while The Initiates Plc (TIP) followed with a decline of 9.62 per cent to close at 47 kobo.

Caverton Offshore Support Group depreciated by 4.62 per cent to close at N1.24, while Veritas Kapital Assurance declined by 4.35 per cent to close at 22 kobo. Honeywell Flourmills shed 4.29 per cent to close at N3.35 kobo. UPDC lost 4.17 per cent to close at N1.15 kobo. Royal Exchange depreciated by N3.45 per cent to close at 56 kobo.

NGX Group declined by 2.76 per cent to close at N28.20 kobo. Champion Breweries fell by 2.73 per cent to close at N3.92 kobo. UPL also lost 2.27 per cent to close at N2.15 kobo.
The total volume traded increased significantly by 106.4 per cent to 1.186 billion units, valued at N19.226 billion, and exchanged in 10,369 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 214.944 million shares valued at N2.333 billion. GTCO followed with 208.061 million shares worth N6.243 billion, while Zenith Bank traded 85.7 million shares valued at N2.623 billion.

Japaul Gold & Ventures traded 72.596 million shares valued at N37.401 million, while Access Holdings sold 72.112 million shares worth N1.015 billion.