Stock market reopens bullish as index gains N8 billion
Despite the two day holiday declared by the Federal Government on Monday and Tuesday, to commemorate the Eid al-Fitr celebration, transactions on the Nigerian Stock Exchange (NSE), reopened bullish yesterday, occasioned by gains in most blue-chip stocks, causing market capitalisation to rise by N8billion.
Specifically, at the close of trading Wednesday, the All Share Index recorded 16.48 points or 0.07 per cent gain to settle at 25,221.23 points. Similarly, market capitalisation gained N8billion to close at N13.144trillion.
The uptrend was impacted by gains recorded in large and medium value stocks, amongst which were; Nigerian Breweries, Dangote Cement, Stanbic IBTC Holdings, Guinness Nigeria, and Dangote Sugar Refinery.
Analysts at United Capital Plc, said: “Recovery in share prices is driven by; rebalancing in the oil market. Increasing indications that governments around the world will reopen their economies regardless of the anxiety around COVID-19; cheap market valuation of high quality stocks; sustained dividend declaration by corporates, translating into attractive dividend yield amid poor rates on treasury bills (T-bills); and sizable market liquidity.”
Market breadth remained positive, with 32 gainers versus 11 losers. Nigerian Breweries recorded the highest price gain of 10 per cent to close at N43.45 per share.
Stanbic IBTC Holdings followed with 9.98 per cent to close at N35.80, and May and Baker Nigeria rose 9.96 per cent to close at N3.09, per share.GlaxoSmithkline Consumer Nigeria edged up 9.79 per cent to close at N7.85, while Access Bank appreciated by 9.70 per cent to close at N7.35, per share.
On the other hand, Ardova Plc led the losers’ chart by 10 per cent to close at N14.40 per share.
Regency Alliance Insurance followed with 8.70 per cent to close at 21 kobo, while Afromedia lost 7.14 per cent to close at 26 kobo, per share.Transnational Corporation of Nigeria (Transcorp) lost 6.49 per cent to close at 72 kobo, and Wapic Insurance shed 6.06 per cent each to close at 31 kobo, per share.
Also, total volume of trades increased by 124.06 per cent to 581.607 million units valued at N5.591billion, exchanged in 7,759 deals. Transactions in the shares of FBN Holdings topped the activity chart with 120.862 million shares at N681.865million. Zenith Bank followed with 67.267 million shares worth N1.192billion, while Guaranty Trust Bank traded 62.688 million shares at N1.542billion.
United Bank of Africa (UBA) traded 45.79 million shares valued at N328.618million, while Transcorp transacted 36.542 million shares worth N26.993million.