Stock market extends gain with 0.11 index rise
Following sustained bargain-hunting in the shares of most blue-chip stocks, the Nigerian equity market extended a bullish run to three consecutive sessions, yesterday, as the All-Share Index (ASI) increased further by 0.11 per cent.
At the close of transactions Wednesday, the ASI expanded by 45.10 absolute points, or 0.11 per cent increase to close at 40,341.05 points. Similarly, the overall market capitalisation gained N24 billion to close at N21.094 trillion.
The market gain was piloted by price appreciation in medium and large value stocks, including; Mobil Nigeria, Flour Mills of Nigeria, BOC Gases, Seplat Petroleum Development Company, and Ardova Plc.
Analysts at Afrinvest Limited, said: “We believe the positive sentiment would be sustained till the close of the week.”
Vetiva Dealing & Brokerage, also noted that “With most fundamental indicators (like improving Crude Oil prices, low yields in the fixed income market, as well as a better comparative returns in the equity market) still in favour of the Nigerian equity market, we expect the bulls to continue to dominate most of the sessions in the near term. However, the possibility of profit-taking on recent gains cannot be overruled.”
Sentiment, as measured by market breadth, was positive, as 32 stocks gained, relative to 16 losers. Academy Press, Sovereign Trust Insurance and Veritas Kapital Assurance recorded the highest price gain of 10 per cent each, to close at 33 kobo, 22 kobo and 22 kobo, respectively.
BOC Gases followed with 9.92 per cent gain to close at N12.52, while Champion Breweries rose 9.80 per cent to close at N1.12 kobo.
On the other hand, Chellarams Plc led the losers’ chart by 9.96 per cent to close at N2.26 kobo. Livestock Feeds followed with a 9.74 per cent fall to close at N1.76 kobo, while Consolidated Hallmark Insurance shed 8.82 per cent to close at 31 kobo.
FTN Cocoa Processors slipped 5.88 per cent to close at 64 kobo, while Cutix lost five per cent to close at N2.09, per share.
However, the total volume traded fell 59.9 per cent to 468.146 million units, valued at N6.963 billion, exchanged in 5,697 deals.
Transactions in the shares of Zenith Bank topped the activity chart with 45.773 million shares valued at N1.186 billion. Lasaco Assurance followed with 40.725 million shares worth N17.024 million, while United Bank for Africa (UBA) traded 31.816 million shares at N283.105 million.
Japaul Gold and Ventures traded 20.975 million shares valued at N26.638 million, and Sovereign Trust Insurance transacted 19.063 million shares worth N4.194 million.
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