Gains in 37 stocks lift index by 0.7 per cent

Following gains in 37 stocks, the Nigerian equities market reversed losses, to close upbeat yesterday, as the all-share index (ASI) appreciated by 0.7 per cent.

The ASI gained 714.28 points, representing a gain of 0.72 per cent to close at 99,980.3 points. Also, market capitalisation rose by N390 billion to close at N54.707 trillion.

The upturn was driven by price appreciation in large and medium capitalised stocks amongst which are Guaranty Trust Holding Company, Dangote Sugar Refinery, Zenith Bank, United Bank for Africa (UBA) and Nigerian Exchange Group.

As measured by market breadth, market sentiment was positive, as 37 stocks gained relative to 19 losers. GTCO, Juli, NEM Insurance and UBA emerged the highest price gainer of 10 per cent each to close at N39.6, N3.41, N6.60 and N22.55 kobo respectively. Champion Breweries followed with a gain of 9.97 per cent to close at N3.42, while Consolidated Hallmark Holdings advanced by 9.92 per cent to close at N1.33 kobo.

On the other side, SUNU Assurance led others on the losers’ chart with 10 per cent to close at N1.71. Eterna followed with a decline of 9.81 per cent to close at N14.25, while CWG shed 9.76 per cent to close at N5.55 kobo. Morison Industries depreciated by 9.58 per cent to close at N1.51, while Cadbury Nigeria declined by 9.52 per cent to close at N19.

On what will shape the market in the next trading session, analysts at Vetiva Dealings and Brokerage said: “The market recorded an unexpected rebound today, as investors snapped up shares of fundamentally sound names, to close the month with a 116bps loss. We expect a cautious close to the week, as market participants continue to weigh their investment decision across the equity market and the less risky option – fixed income instruments.”

Futureview Research said: “We anticipate a positive conclusion to the trading week amidst improved investors sentiment.” The total volume of trade increased by 37.03 per cent to 542.95 million units, valued at N8.697 billion, and exchanged in 9,650 deals. Transactions in the shares of UBA led the activity with 93.708 million shares worth N2.067 billion. Transnational Corporation (Transcorp) followed with account of 54.082 million shares valued at N692.193 million, while Japaul Gold & Ventures traded 34.336 million shares valued at N65.768 million.

Sterling Financial Holdings Company traded 28.492 million shares worth N129.151 million, while Fidelity Bank traded 27.089 million shares worth N270.735 million.