Santa rally continues as gains in Nestle, others lift index by N124 billion

Yuletide rally ahead of the 2022 full-year earnings and dividend payout continued, yesterday, as bargain hunting in highly capitalised stocks, especially Nestle Nigeria and Geregu Power lifted capitalisation further by N124 billion.

Extending a nine-day winning streak, the capitalisation of listed equities gained N124 billion to close at N27.198 trillion while the All Share Index (ASI), which measures the performance of quoted companies rose by 228.51 points, representing an increase of 0.46 per cent to close at 49,934.6 points.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are: Nestle Nigeria, Geregu Power, Presco, Guaranty Trust Holding Company (GTCO) and Dangote Sugar Refinery.

Analysts at United Capital Plc said “We expect bullish sentiments to continue. Also, portfolio rebalancing is another critical activity to continue to look out for from investors as the year rounds up.”

Afrinvest said: “Investors’ sentiments as measured by market breadth weakened in the prior session as 27 stocks advanced, while six declined and 81 others closed flat. We anticipate that the positive performance would be sustained as more portfolio investors realign ahead of the new year.”

Analysts at Vetiva Dealings and Brokerage said: “As the year draws steadily to a close, we expect the market to maintain its positive momentum for the remaining sessions, with few opportunities for profit-taking along the way.”

Market sentiment, as measured by market breadth, was positive as 27 stocks gained, relative to six decliners. Champion Breweries and Cornerstone Insurance recorded the highest price gain of 10 per cent each to close at N5.17 kobo and 55 kobo, while Geregu Power followed with a gain of 9.96 per cent to close at N127.

Wema Bank went up by 9.94 per cent to close at N3.54 kobo, Thomas Wyatt Nigeria also appreciated by 9.88 per cent to close at 89 kobo.

On the other hand, R.T. Briscoe Nigeria led the losers’ chart by 7.41 per cent to close at 25 kobo. McNichols followed with a decline of 3.70 per cent to close at 52 kobo while FTN Cocoa processors depreciated by 3.45 per cent to close at 28 kobo.

Wapic Insurance declined by 2.44 per cent to close at 40 kobo, while Sterling Bank depreciated by 1.42 per cent to close at N1.39 kobo.

The total volume of trade increased by 255.3 per cent to 498.728 million units, valued at N3.885 billion, and exchanged in 3,989 deals. Transactions in the shares of Veritas Kapital Assurance topped the activity chart with 348.545 million shares valued at N69.709 million.

Access Holdings followed with 28.933 million shares worth N248.248 million, while GTCO traded 25.745 million shares valued at N587.592 million.

Geregu Power traded 8.684 million shares valued at N1.025 billion, while AIICO Insurance transacted 8.289 million shares worth N4.618 million.