Index rises 0.6% in post-election trading
. Experts say outcome will determine market direction
As investors await the results of the 2019 Presidential and National assembly elections, equity transactions at the Nigerian Stock Exchange (NSE), reopened in an upbeat yesterday, as the All-share index (ASI) appreciated by 0.6 per cent.
Specifically, at the close of transactions, the ASI was up by 184.6 absolute points, representing an increase of 0.57 per cent, to close at 32,700.12 points. Similarly, market capitalisation rose N68 billion to close at N12.194 trillion.
The upturn was impacted by gains recorded in large and medium capitalised stocks, amongst which are, Nigerian Breweries, Mobil Nigeria, Dangote Flour Mills, NASCON Allied Industries, and Dangote Sugar.
The Managing Director, Highcap Securities, Imafidon Adonri, said the sentiments around Zenith Bank are propelling the market, noting that the market is yet to react to the outcome of the election.
“The pre-election mood still prevails; when the full result is released, the market will react,” he said.
Analysts at Afrinvest Limited said: “We observed cautious trading in yesterday’s session, as investors await the results of the 2019 Presidential elections. We expect market direction this week to be largely determined by the outcome of the election.”
Market breadth closed positive, recorded 23 gainers against eight losers. Dangote Flour led the gainers table by 9.95 per cent to close at N11.05, while Associated Bus Company followed with a gain of 9.62 per cent to close at 57 kobo, per share.
Veritas Kapital Assurance rose by 9.52 per cent to close at 23 kobo, while Niger Insurance and Royal Exchange gained 9.09 per cent, each to close at 24 kobo and 36 kobo, per share, respectively.
On the other hand, Union Diagnostic & Clinical Services led the laggards’ table by 6.45 per cent to close at 29 kobo. Total Nigeria followed with a loss of 2.56 per cent to close at N190, while Cutix shed 1.87 per cent to close at N1.87, per share.
Flour Mills Nigeria dipped by 0.99 per cent, to close at N20, while Access Bank down by 0.78 per cent, to close at N6.35, per share. Total volume traded declined marginally by 0.4 per cent to 219.81 million shares, valued at N5.55 billion, and exchanged in 2,999 deals.
Transactions in the shares of Nigerian Breweries topped the activity chart with 42.71 million shares valued at N3.55 billion. Diamond Bank traded 30.8 million shares worth N75.5 billion, and Access Bank transacted 20.71 million shares valued at N131.4 million.
Guaranty Trust Bank traded 19.2 million shares worth N733.88 million, while FCMB Group traded 15.03 million shares valued at N34.41 million.