FG targets policies for stock market growth as capitalisation rises by N163bn

Vice President, Professor Yemi Osinbajo has reiterated the resolve of the Federal Government to implement efficient policies that would enable the Nigerian Exchange Limited (NGX) and the capital market to reach greater heights and contribute more to the economy.

Osinbajo gave the assurance during a courtesy visit of the Management of the NGX, led by the Chief Executive Officer, Temi Popoola, to the State House in Abuja yesterday.

He urged the NGX to explore areas that can help deepen the capital market by venturing into emerging frontiers markets and tapping into growth opportunities waiting to be captured.

He also congratulated the management of the Exchange on the successful conversion of the defunct Nigerian Stock Exchange (NSE) into a public company.

In his presentation at the State House, Popoola stated that the exchange, under the new arrangement has been repositioned for profit as well as align to the tastes and preferences of the market.

Under this new arrangement, he said the market will be opened up for more companies to be listed, resulting in more revenues for government as listed companies are more responsive to their operating environment.

“We, therefore, appeal to the Federal Government to support the rejuvenation of the Exchange, and we assure you of better times ahead both for the public and corporate.”

Meanwhile, bargain-hunting activities persisted in the equities market yesterday, causing market capitalisation to rise further by N163 billion.

Specifically, at the close of transactions yesterday, the market capitalisation of listed equities increased by N163 billion to N20.276 trillion from N20.113 trillion recorded the previous day.

Similarly, the NGX All-Share Index, which measures the performance of listed firms also appreciated by 313.26 points or 0.8 per cent to 38917.99 from 38604.72 points posted on Monday.

Speaking on market performance, the Chief Operating Officer of Investdata Consulting Limited, Ambrose Omordion said: “We expect mixed trend, while portfolio reshuffling continued as market players study and digest the corporate earnings ahead of major banks results. The mixed volume suggests that smart money is taking advantage of the relatively low prices to reposition their portfolio. The banking sector and others remain attractive on the back of the prevailing low prices.

“ We advise that investors should target dividend-paying stocks with growth prospects in 2021, ahead of interim dividend announcement. This is especially given that despite the seeming improvements, fixed-income yield continues to offer a negative real rate of return due to the galloping inflation,” he said.

Investors traded 231.451 million shares valued at N2.132 billion in 4651 deals against 244.287 million shares cost N1.908 billion in 4609 deals.

Further breakdown of yesterday’s trading indicated that Wema Bank Plc led the gainers’ chart with 5.95 per cent to close at N0.89 kobo, while UPDC Plc followed with a gain of 5.93 per cent to close at 1.25 kobo.

Airtel Africa gained 5.69 per cent to close at N650. Courtevilla Business Solution added 4.17 per cent to close at 25 kobo. Cutix Plc gained 3.95 per cent to close at N5.

On the contrary, FTNcocoa Plc topped losers’ chart, dropping by 8.16 per cent to close at 45 kobo while Honey Well Flour trailed with a loss of 7.78 per cent to close at N1.54 kobo. Mutual Benefit Assurance dipped by 5.13 per cent to close at 37 kobo.

Transnational Corporation of Nigeria fell by 5.10 per cent to close at 93 kobo while Neimeth International Pharmaceutical dipped by 5.06 per cent to N1.50 kobo

The result further showed that Transnational Corporation of Nigeria (Transcorp) recorded the highest volume of activities during the day, exchanging 17.476 million shares worth N16.558 million.

Jaiz Bank followed with an account of 16.582 million shares valued at N10.235 million, Honey Well Flour traded 13.037 million shares cost N19.966 million Wema Bank sold a total of 11.355 million shares valued at N9.977 million, Mutual Benefits Assurance exchanged 11.104 million shares cost N4.010 million.