Market Index Grows on Sustained Bulls’ Run

Bargain hunting in many highly capitalized stocks has continued to push transactions on the equities sector of the Nigerian Stock Exchange (NSE) as the All-share index surged further by 1.53 per cent.
Specifically, at the close of transactions yesterday, the All- Share Index (ASI) gained 580.37 points, representing 1.53 per cent rise to close at 38,435.29 points from 37,854.92 recorded on Tuesday.

Similarly, the market capitalisation gained N210 billion from N13.712 trillion to close at N13.922 trillion. The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Lafarge Africa, Nigerian Breweries, Guinness Nigeria and Flourmill Nigeria.

Analysts at APT Securities and Funds Limited noted, yesterday’s gain was dominated by high cap stocks in industrial, consumer goods and banking sector. We expect more bullish stance to counter the 11 consecutive down days just concluded.”

Codros Capital Limited said:” Gains are likely to extend in the equities market, on the back of attractive prices of value stocks, and still-positive macroeconomic fundamentals.”

Further breakdown of yesterday’s transactions showed that market breadth expanded its positive space with 41 gainers as against 16 losers. Fidelity Bank led the gainers’ table by 9.91 per cent to close at N2.33 per share. Oando followed with a gain of 9.70 per cent to close at N7.35, while Diamond Bank appreciated by 9.46 per cent to close at N1.62 per share.

Also, Lafarge Africa went up by 9.35 per cent to close at N38 and Dangote Flour rose by 9.09 per cent to close at N10.20 per share.On the other hand, Mutual Benefit Assurance and Guinea Insurance led the laggards’ table by five per cent each for both stocks to close at 38 kobo, while NPF Microfinance Bank trailed with a loss of 4.73 per cent to close at N1.61 per share.

May and Baker dipped by 4.15 per cent to close at N2.54, while Sovereign Trust Insurance went down by 3.85 per cent, to close at 25 kobo per share.Also, total volume traded rose by 15.73 per cent to 393.12 million shares, valued at N6.67 billion, and exchanged in 5,285 deals.

Transactions in the shares of Zenith Bank topped the activity chart with 110.6 million shares valued at N3.1 billion. Fidelity Bank traded 63.87 million shares worth N148.4 million and UBA transacted 22.46 million shares valued at N255.33 million.

By Helen Oji

The Guardian Newspaper June 7th, 2018

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