Gains in blue-chip stocks lift capitalisation by N382 billion
The equities market had a rebound after two sessions of losses due to gains in many highly capitalised stocks, causing market capitalisation to soar by N382 billion.
At the close of transactions yesterday on the Nigerian Exchange Limited (NGX), the All Share Index (ASI) increased by 733.30 absolute points, representing a growth of 1.89 per cent to close at 39,592.29 points. Similarly, market capitalisation gained N382 billion to close at N20.628 trillion.
Analysts said the upturn was buoyed by buy-interest in blue-chip stocks of the Industrial, Consumer Goods, and Banking sectors, amongst which are: Nestle Nigeria, Dangote Cement, Presco, Northern Nigeria Flour Mills (NNFM) and FBN Holdings (FBNH).
Analysts at Afrinvest Limited said: “In the final trading session for the week, we anticipate an extension of this positive momentum as investors snap up bargains ahead of the weekend.”
Vetiva Dealings and Brokerage firm said: “The increased buy-side pressure could be attributed to growing positive sentiment from the new FX inflows into the country and improvement in global oil price. However, we expect the market to trade mixed to close the short trading week with continued interest in some large and small-cap names.”
Market breadth also closed positive, recording 24 gainers and 14 losers. Northern Nigeria Flour Mill (NNFM) recorded the highest price gain with 6.88 per cent, to close at N8.55 kobo while FBN Holdings followed with a gain 6.62 per cent to close at N8.05 kobo. Dangote Cement appreciated by 6.53 per cent to close at N261.00 kobo.
Nestle Nigeria went up by 6.36 per cent to close at N1,489, Courteville Business Solutions also appreciated by 6.06 per cent to close at 35 kobo.
On the other hand, Julius Berger Nigeria and AXA Mansard Insurance led the losers’ chart by 10 per cent each, to close at N24.30 kobo and N2.43 kobo while Greif Nigeria followed with a decline of 9.92 per cent to close at N5.45 kobo.
Sovereign Trust Insurance shed 8.33 per cent to close at 22 kobo. Consolidated Hallmark Insurance depreciated by 7.02 per cent to close at 53 kobo.
The total volume of shares traded decreased by 9.9 per cent to 474.371 million shares, worth N4.006 billion, and traded in 3,547 deals. Transactions in the shares of FBNH topped the activity chart with 264.690 million shares valued at N2.051 billion.
Universal Insurance followed with 76.666 million shares worth N15.333 million, while AXA Mansard Insurance traded 13.076 million shares valued at N31.832 million.
Zenith Bank traded 12.115 million shares valued at N283.269 million, while Fidelity Bank transacted 11.229 million shares worth N27.509 million.