Equities reverse losses as capitalisation rises by N10 billion

…Analyst predicts gloomy outlook on MPR hike
The Nigerian Exchange Limited (NGX) reversed losses to close in an upbeat yesterday, following gains in Lafarge WAPCO and 11 stocks, as market capitalisation increased by N10 billion.

At the close of trading yesterday, market capitalisation of listed equities increased by 0.03 per cent to close at N29.909 trillion from N29.899 trillion reported the previous day. The All Share Index, which measures the performance of quoted companies, also appreciated by 18.64 basis points to 54904.68 points from 54886.04 points, recorded the previous day.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are Lafarge WAPCO, Zenith Bank, Stanbic IBTC, Vitafoam and Champion Breweries.

Analysts at Vetiva Dealings and Brokerage said: “Following the decision by the Monetary Policy Committee (MPC) to raise the rate by 50bps to 18%, we anticipate a rise in yields in the Fixed Income market in the coming sessions, which could further dampen sentiments in the equities market.”

On the price movement chart, Linkage Assurance led the gainers, appreciating by 9.76 per cent to close at 45 kobo while Wapic Insurance followed with a gain of 7.89 per cent to close at 41 kobo. Champion Breweries added 4.26 per cent to close at N4.90 per share; Sterling Bank gained 2.67 per cent to close at N1.54 kobo.

Jaiz Bank increased by 2.30 per cent to close at 89 kobo. Lafarge WAPCO gained 2.17 per cent to close at N25.95 kobo while AIICO added 1.72 per cent to close at 59 kobo. Zenith Bank appreciated by 1.41 per cent to close at N25.10 kobo. Vitafoam advanced by 1.08 per cent to close at N18.80 kobo.

Fidelity Bank improved by 97 per cent to close at N5.20 kobo. Stanbic IBTC increased by 68 per cent to close at N36.75 kobo. NGX Group also added 18 kobo to close at N27.90 kobo.

On the contrary, Ikeja Hotel recorded the highest loss, declining by 9.65 per cent to close at N1.14 kobo, Cadbury Nigeria Plc followed with a drop of 5.83 per cent to close at N12. UPL fell by 4.76 to close at N4.65 kobo, International Breweries was down by 4.30 per cent to N4.65 kobo, Regal Insurance declined by 3.45 per cent to close at 29 kobo.

African Prudential lost 1.67 per cent to close at N5.90 kobo while TransNational Corporation of Nigeria fell by 1.54 per cent to close at N1.28 kobo. United Bank for Africa shed 1.23 per cent to close at N8.

AccessCorp depreciated by 1.11 per cent to close at N8.90 kobo. FBN Holding shed 46 per cent to close at N10.90 kobo. Cutix declined by 45 per cent to close at N2.22 kobo while GTCO also lost 40 kobo to close at N24.60 kobo.

Volume of trades declined as investors traded 127.744 million shares valued at N1.586 billion in 2986 deals against 1.171 billion shares worth N2.876 billion exchanged hands the previous day in 3066 deals.

Transactions on the shares of United Bank for Africa UBA led activity chart during the day with 19.600 million shares valued at N157.244 million, Transnational corporation of Nigeria followed with 14.448 million units valued at N15.505 million.

Fidelity bank traded 12.738 million shares worth N65.668 million, Zenith Bank exchanged 11.964 million shares valued at N298. 835 deals while GTCO Plc traded 10.472 million shares worth N258.239 million.