NSE’s indices soar by N370 billion
Investors’ demand for high dividend stocks heightens
Ahead of the full year result of listed companies, investors increasing demand for fundamentally sound dividend paying stocks, coupled with high expectations of improved dividend yield, yesterday, buoyed transactions on the trading floor of the Nigeria Stock Exchange (NSE), as market capitalisation soared significantly by N370 billion.
At the end of transactions yesterday, market capitalisation of listed equities rose by N370 billion or 2.4 per cent to N15.549 trillion from N15.179 trillion achieved on Tuesday.Similarly, the All-Share Index, which measures the performance of listed firms, crossed the 42,299 mark to close at 43,330.54, adding 1,030.98 points yesterday.
Also, investors traded 571 million shares worth N10.8 billion in 5,142 deals, higher than 438 million units valued at N8.7 million that changed hands in 5,433 deals on Tuesday.Analysts attributed the increase in indices to investors’ high demand and repositioning for high dividend stocks, as listed companies present their scorecards.
Precisely, analysts in Afrinvest Securities said: “Current trading pattern is reflective of the fact that investors are increasingly taking position in fundamentally sound dividend paying stocks as earnings begin to trickle in, hence we expect market performance to remain largely positive in the short term.” Further breakdown of yesterday’s trading showed that 31 stocks recorded price appreciation, as Nestle topped the gainers’ chart with 42.00 kobo to close at N1,442 per share, while Dangote Cement followed with 12.80 per share.
Nigerian Breweries added 5.80 kobo to close at N135.90 per share. Seplat gained 2.60 kobo to close at N660.50 per share. Unilever appreciated by 2.40 kobo to close at N51.20 per share.
WAPCO gained 1.90 kobo to close at N51.90 per share. Cement Company of Northern Nigeria appreciated by 1.55 kobo to close at N19.75 per share. Stanbic IBTC increased by 1.50 kobo to close at N47.50 per share.
GlaxoSmithKline garnered 0.85 kobo to close at N21.00 per share. EcoBank Transnational Incorporated garnered 0.65 kobo to close at N20.35 per share.However, Redstar Express led others on the losers’ chart with 0.30 kobo to close at N6.00 per share, while Union Bank followed with 0.15 kobo to close at N6.50 per share.
TransNational Corporation dropped 0.06 kobo to close at N1.97 per share. Dangote Flourmills shed 0.05 kobo to close at N16.45 per share. Linkage Assurance depreciated by 0.04 kobo to close at N0.86 per share.
First City Monument Bank dominated in volume terms with 192 million shares worth N483million, while Access Bank followed with 49 million units valued at N652 million.
FBN Holdings accounted for 48 million shares worth N551million. Transnational Corporation traded 34 million units valued at N69 million. Zenith Bank exchanged 25 million shares worth N816 million.