NGX rebounds as gains in high cap stocks lift indices by N276bn

The Nigerian Exchange Limited (NGX) reopened in an upbeat yesterday, occasioned by gains in major highly capitalised (high cap) stocks, as market capitalisation appreciated by N276 billion.

Specifically, the All-Share Index (ASI) rose by 528.15 points, representing a growth of 1.26 per cent to 42,411.12 points. Accordingly, investors gained N276 billion in value as market capitalisation rose to N22.130 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communication (MTNN), Dangote Cement, Vitafoam Nigeria, GlaxoSmithKline Consumer Nigeria (Glaxosmith) and Nigerian Exchange Group (NGXGroup).

Analysts at Cordros Securities Limited expected the bulls to regain dominance in the market given the moderation in the prices of bellwether stocks in the last three weeks.

“However, we do not rule out the possibility of continued profit-taking activities. In addition, we believe the outcome of the bond auction scheduled to hold during the week will also shape market sentiments.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” Cordros Securities said.

Vetiva Dealings and Brokerage said: “Given the bullish sentiment seen in the banking space last week, we saw profit-taking activities drag the index down while investors continue to cherry-pick some counters across sectors. We expect a mixed session tomorrow amid a stronger sell-side interest.

Market breadth closed positive, as 23 stocks posted gains while 16 others constituted the losers’ chart.

Meyer Plc recorded the highest price gain of 9.09 per cent, to close at 36 kobo while Academy Press followed with a gain of 8.51 per cent to close at 51 kobo. FTN Cocoa processors appreciated by 8.11 per cent to close at 40 kobo.

GlaxoSmithKline went up by 7.08 per cent to close at N6.05 kobo while MTN Nigeria Communication (MTNN) appreciated by 7.08 per cent to close at N186.80 kobo.

Lasaco gained 5.77 per cent to close at N1.10 kobo while CHI added 5.45 per cent to close at 58 kobo. Chams appreciated by five per cent to close at N21 kobo. Sterling Bank garnered 3.40 per cent to close at N1.52 kobo. AIICO also increased by 2.94 per cent to close at 70 kobo.

On the other hand, NASCON Allied Industries (NASCON) led the losers’ chart with 6.79 per cent to close at N13.05 kobo. Cornerstone Insurance followed with a decline of six per cent to close at 47 kobo while Wapic Insurance depreciated by 5.88 to close at 48 kobo.

Oando lost 4.26 per cent to close at N4.72, while Champion Breweries shed 4.06 per cent to close at N2.60 kobo. Mutual Benefits Assurance lost 3.85 per cent to close at 25 kobo.

First City Monument Bank and Royal Exchange Assurance declined by 3.33 per cent to close at N2.90 and 58 kobo. GTCO shed 1.89 per cent to close at N26 while Zenith Bank also depreciated by 1.76 per cent to close at N25.05 kobo.

However, the total volume of trades declined by 48.4 per cent to 229.641 million shares worth N3.289 billion and traded in 4,426 deals. Transactions in the shares of Unity Bank topped the activity chart with 48.316 million shares valued at N20.449 million.

Universal Insurance followed with 21.1 million shares worth N4.220 million, while FBN Holdings (FBNH) traded 19.889 million shares valued at N235.193 million.

UPDC Real Estate Investment Trust traded 16.926 million shares valued at N75.837 million, while Guaranty Trust Holding Company (GTCO) transacted 12.835 million shares worth N336.810 million.