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Interim dividends spur market capitalisation by N104 billion

By Helen Oji
07 July 2021   |   3:07 am
Interest in firms declaring interim dividends has continued to spur activities in the equities sector of the Nigerian Exchange Limited (NGX), as many blue-chip stocks recorded price appreciation,

[FILES] Nigerian Exchange Group (NGX). Photo/facebook/ngxgroup

Interest in firms declaring interim dividends has continued to spur activities in the equities sector of the Nigerian Exchange Limited (NGX), as many blue-chip stocks recorded price appreciation, resulting in a further rise in market capitalisation by N104 billion.

Yesterday, the market capitalisation of listed equities increased by 0.52 per cent to N20.026 trillion from N19.923 trillion reported the previous day, while the All Share Index (ASI) appreciated by 198.03 basis points to 38418.04 points from 38220.01 points traded on Monday.

Investors traded 288.926 million shares valued at N2.418 billion in 4540 deals against 282.824 million shares cost N1.868 billion traded the previous day.

The Chief Research Officer of Investdata Consulting, Ambrose Omodion said the increasing buying interests in interim dividend-paying stocks have made many blue-chip companies to break out from their consolidated patterns as more companies announce their closed period.

He added: “Many others are also giving board meeting notifications for half-year results approval, a situation that has triggered these waves in the market.”

Analysts at Afrinvest said: “We expect the market to sustain its positive performance as investors position ahead of the H1 2021 earnings result.

The market upturn was driven by price appreciation in large and medium capitalised stocks amongst which are: Seplat Energy, Total Nigeria, Zenith Bank, Berger Paints Nigeria and Access Bank.

Market sentiment was positive, as 28 stocks gained, while 10 constituted the losers’ chart. May and Baker Nigeria recorded the highest price gain of 9.65 per cent to close at N4.43 kobo while UACN Property Development Company followed with a gain of 9.57 per cent to close at N1.03 kobo. Total Nigeria went up by 9.24 per cent to close at N158.40 kobo.

Consolidated Hallmark Insurance rose by 9.23 per cent to close at 71 kobo while University Press gained 9.21 per cent to close at N1.66 kobo.

On the other hand, Eterna led the losers’ chart by 9.73 per cent to close at N6.77 kobo. Linkage Assurance followed with a decline of 9.41 per cent to close at 77 kobo. Unity Bank lost 8.06 per cent to close at 57 kobo.

Wapic Insurance lost 5.08 per cent to close at 56 kobo, while Jaiz Bank shed 1.72 per cent to close at 57 kobo.

The total volume of trades rose by 2.23 per cent to 288.926 billion units, valued at N2.419 billion, and exchanged in 4,540 deals.

Transactions in the shares of Fidelity Bank topped the activity chart with 42.068 million shares valued at N96.625 million. FBN Holdings (FBNH) followed with 32.405 million shares worth N242.558 million.

United Bank for Africa (UBA) traded 22.742 million shares valued at N174.871 million. Access Bank traded 13.757 million shares valued at N124.703 million, while Wema Bank transacted 11.670 million shares worth N8.520 million.