Telco firms, 16 stocks buoy market capitalisation by N643bn

Heavy transactions in the shares of Airtel Africa, MTN Nigeria and 16 other stocks buoyed transactions on the equities sector of the Nigerian Exchange Limited (NGX), as market capitalisation increased by N643 billion.

As a result, the All-Share Index (ASI) grew by 1232.37absolute points, representing a rise of 2.93 per cent, to close at 43,246.87 points. Similarly, the overall market capitalisation value increased by N643 billion to close at N22.569 trillion.

The market positive performance was driven by price appreciation in large and medium capitalised stocks, which are; Airtel Africa, MTNN, Unilever Nigeria, Nigerian Exchange Group (NGXGroup) and Guinness Nigeria.

However, the market breadth closed negative, recording 25 losers and 18 gainers.

Analysts at Vetiva Dealings and Brokerage said: “The telcos lifted the market today, as investors reacted positively to last week’s announcement of CBN’s Approval in Principle of the listed Telcos’ Payment Service Bank Licenses. Activity also remained elevated in the banking space with decent trades in Zenith, GTCO and FBNH. We expect the latter to persist amid strong valuations and good entry points. “

Airtel Africa recorded the highest price gain of 10 per cent to close at N858.00, per share. Red Star Express followed with a gain of 9.94 per cent to close at N3.43 kobo, while Cutix appreciated by 9.91 per cent to close at N6.21 kobo per share.

MTNN went up by 9.62 per cent to close at N192.50 kobo, while Unilever Nigeria appreciated by 9.36 per cent to close at N14.60 per share.

On the other hand, Conoil led the losers’ chart by 9.80 per cent to close at N23.00 kobo per share. Computer Warehouse Group (CWG) followed with a decline of 9.73 per cent to close at N1.02, while Custodian Investment declined by 9.47 per cent to close at N7.65, per share.

Honeywell Flour Mills shed 9.07 per cent to close at N3.31, while Africa Prudential depreciated by 4.72 per cent to close at N6.05, per share.

The total volume traded increased by 57.1 per cent to 443.606 million shares, worth N5.048 billion, and traded in 5,233 deals. Transactions in the shares of Sterling Bank topped the activity chart with 81.232 million shares valued at N121.847 million. UAC of Nigeria (UACN) followed with 67.245 million shares worth N706.443 million, while FBN Holdings (FBNH) traded 42.236 million shares valued at N473.448 million.

Zenith Bank traded 32.622 million shares valued at N797.349 million, while Transnational Corporation of Nigeria (Transcorp) transacted 20.963 million shares worth N21.574 million.