Equities rebound as index appreciates marginally by N150b
The equities market rebounded, following renewed appetite in some highly capitalised stocks, causing market capitalisation to appreciate marginally by N150 billion. Specifically, at the close of transactions yesterday, the All-Share Index (ASI), increased by 289.63 absolute points, representing a growth of 1.00 percent to close at 29,352.18 points. The overall market capitalisation size gained N150 billion to close at N15.142 trillion.
The upturn was impacted by gains recorded in high value stocks, amongst which were; Dangote Cement, MTN Nigeria, Forte Oil, Lafarge Africa, and Unilever Nigeria. Reacting on market performance and outlook, the Chief Operating Officer, InvestData Consulting Limited, said: “Investors are taking advantage of price correction, ahead of the release of Nigeria’s December inflation data, as well as next week’s first Monetary Policy Committee meeting for Year 2020, and full-year earnings reports of companies.
“This is also against the backdrop of the prevailing low-interest rate regime in the money market.”He pointed out that investors and traders are repositioning amidst changing sentiments in the hope of improved liquidity and positive economic indices, which pushed the market out of the bearish zone. Omordion added: “We see Investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.”
Market breadth closed positive as 23 stocks posted gains while 16 declined. Livestock Feeds recorded the highest price gain of 10 percent to close at 55 kobo per share. Forte Oil followed with 8.42 percent to close at N20.60 per share. Lafarge Africa rose 6.33 percent to close at N15.95, and Jaiz Bank 6.25 percent to close at 68 kobo, per share.
FBN Holdings appreciated by 5.71 percent to close at N7.40, per share. On the other hand, BOC Gases led the losers’ chart with 10 per cent to close at N4.95 per share. Caverton Offshore Support Group followed with 9.97 percent to close at N2.62, while Cornerstone Insurance was down 6.90 to close at 54 kobo, per share. UAC of Nigeria (UACN) lost 6.54 percent to close at N10, while BUA Cement shed 5.26 percent to close at N36, per share.
Also, total volume traded rose by 7.51 per cent to 387.16 million shares, worth N5.02 billion, and traded in 4,654 deals.
Transactions in the shares of Access Bank topped the activity chart with 74.64 million shares valued at N770.93 million. Zenith Bank followed with 71.83 million shares worth N1.56 billion, while Lafarge Africa traded 40.73 million shares at N629.9 million. United Bank for Africa (UBA) traded 37.25 million shares valued at N327.99 million, while Morison Industries transacted 35 million shares worth N15.76 million.