Index rises further by N404 billion amid gains in Transcorp Power, others

The Nigerian Exchange Limited (NGX) extended gains, to reopen in an upbeat yesterday, as appreciation in Transcorp the Power Plc and 33 stocks lifted market capitalisation by N404 billion.

The all-share index (ASI) gained 713.99 points, representing a gain of 0.70 per cent to close at 102,044.84 points. Also, market capitalisation rose by N404 billion to close at N57.697 trillion.

The upturn was driven by price appreciation in large and medium capitalised stocks amongst which are; Transcorp Power, Dangote Sugar Refinery, NASCON Allied Industries, Zenith Bank and United Bank for Africa (UBA).

Analysts at United Capital Plc said: “We expect mixed sentiments towards equities investments, with bearish sentiment persisting at the background, motivated by the elevated interest rate regime, and further indication of Monetary Policy Rate (MPR) tightening by the Central Bank of Nigeria (CBN), in line with its inflation-targeting framework.

“However, we expect solid corporate actions and fundamentals to continue to spur bargain hunting among investors.” Also on what will shape the market in the next trading session, Vetiva Dealings and Brokerage said: “The week started off positive (ASI up 70bps). We are likely to see the major drivers (banking and consumer goods) support market performance tomorrow.”

As measured by market breadth, market sentiment was positive, as 34 stocks gained relative to 16 losers. Honeywell Flour Mills and NEM Insurance emerged the highest price gainer of 10 per cent each to close at N3.74 kobo and N6.05 kobo respectively, while Dangote Sugar Refinery followed with a gain of 9.97 per cent to close at N61.20 kobo.

NASCON Allied Industries rose by 9.92 per cent to close at N57.60 kobo while Wema Bank appreciated by 9.79 per cent to close at N7.85 kobo. On the other side, Prestige Assurance led others on the losers’ chart with 10 per cent to close at 54 kobo per share.

LASACO Assurance followed with a decline of 9.83 per cent to close at N2.11, while UACN shed 9.68 per cent to close at N12.60 kobo. RT Briscoe went down by 8.16 per cent to close at 45 kobo, while International Energy Insurance depreciated by 7.74 per cent to close at N1.55 kobo.

The total volume of trade increased by 22 per cent to 436.897 million units, valued at N17.099 billion, and exchanged in 11,344 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) led the activity with 96.631 million shares worth N4.024 billion.

Transnational Corporation (Transcorp) followed with an account of 73.86 million shares valued at N1.231 billion, while Access Holdings traded 48.09 million shares valued at N988.35 million. UBA traded 21.581 million shares worth N497.306 million, while NASCON Allied Industries traded 19.575 million shares worth N1.126 billion.