Renewed appetite for stocks lifts index by 0.09 per cent

Investors’ renewed appetite for stocks, yesterday, aided the rebound of transactions on the Nigerian Exchange (NGX) Limited, as the All-Share Index (ASI) rose by 0.09 per cent.

At the close of transactions yesterday, the ASI gained 34.32 absolute points, representing a growth of 0.09 per cent to close at 38,636.15 points. Similarly, the overall market capitalisation value rose by N18 billion to close at N20.220 trillion.

The uptrend was also driven by price appreciation in medium and large capitalised stocks amongst which are; Guinness Nigeria, MTN Nigeria Communications (MTNN), FBN Holdings (FBNH), Zenith Bank and Vitafoam Nigeria.

Analysts at Vetiva Dealing & Brokerage said: “With our expectations for a mixed market having played out so far this week, we foresee further seesawing activity in the market, as investors continue to take profit on gainers and cherry-pick losing stocks. Thus, we anticipate a similar trading pattern in tomorrow’s session, barring any unexpected shock.”

As measured by market breadth, market sentiment remained negative, as 22 stocks recorded price depreciation while 14 constituted the gainers’ chart. On the price movement chart, Guinness Nigeria recorded the highest price gain of 9.96 per cent to close at N26.50 kobo while Meyer Plc followed with a gain 8.16 per cent to close at 53 kobo. Wema Bank rose by 5.26 per cent to close at 60 kobo.

Chams Plc appreciated by 4.76 per cent to close at 22 kobo while Caverton Offshore Support Group rose by 2.56 per cent to close at N2.00 kobo.

On the other hand, Northern Nigeria Flour Mills (NNFM) led the losers’ chart by 10 per cent to close at N5.40 kobo. Fidson Healthcare followed with a decline of 9.89 per cent to close at N4.28, while Cutix shed 9.78 per cent to close at N2.03 kobo.

Sterling Bank shed 8.33 per cent to close at N1.65, while Wapic Insurance depreciated by eight per cent to close at 46 kobo.

The total volume of trades decreased marginally by 0.03 per cent to 278.044 million units, valued at N2.272 billion, and exchanged in 3,989 deals. Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 46.22 million shares valued at N34.570 million. UAC of Nigeria (UACN) followed with 32.595 million shares worth N311.503 million, while Fidelity Bank traded 28.472 million shares valued at N70.727 million.

Access Bank traded 22.685 million shares valued at N183.242 million, while Zenith Bank transacted 19.618 million shares worth N431.427 million.

Meanwhile, the NGX Regulation Limited (NGX RegCo), the independent regulatory arm of Nigerian Exchange Group, has published its supervision priorities for 2021.

According to the exchange, the supervision priorities provide guidance to Trading License Holders (TLHs) of the exchange, the investing public, and other stakeholders to ensure a fair and orderly market and are underpinned by business practices considered to be of market wide interest.

According to the Chief Executive Officer, NGX RegCo, Ms. Tinuade Awe, “the priority document provides an insight into the performance of TLHs with regards to previous areas of regulatory concerns and observed emerging trends. Some of these include the increased dependence of TLHs on virtual communication and trading channels occasioned by the COVID-19 pandemic, as well as new market trends as it relates to new laws, regulation, and rules.

“Our supervisory programs have, therefore, been re-evaluated to introduce various initiatives designed to deal with the present challenges, including issuing statements, developing dialogue platforms for regulatory updates and providing assistance through regulatory arrangements that seek to cushion the financial and operational effects of regulatory activity on the businesses of our stakeholders as appropriate”.