Nigeria:Stock Market Rebounds As Capitalisation Rises By N15 Billion

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As price gains outweighed losses, transactions on the equities sector of the Nigerian Exchange Limited (NGX) closed in an upbeat yesterday, causing market capitalisation to increase by N15 billion.

Yesterday, the market capitalisation of listed equities increased by N15 billion to N20.568 trillion from N20.533 trillion reported the previous day.

The All Share Index (ASI) which measures the performance of quoted companies appreciated by 27.36 basis points to 39477.18 points from 39449.82 points reported yesterday.

Investors traded 186.326 million shares valued at N1.793 billion in 3595 deals against 198.331 million shares worth N1.056 billion exchanged hands in 3336 deals.

Analysts at Vetiva Dealings and Brokerage said: “With lukewarm activity levels persisting in the market, we expect a similarly mixed session tomorrow as investors continue to favor small to mid-cap names. However, with the downward trajectory seen in the NTB space, discerning investors might turn their attention to fundamentally sound names in the equities market.”

The market’s positive performance was driven by price appreciation in large and medium capitalised stocks which are: Eterna, GlaxoSmithKline Consumer Nigeria, Presco, Honeywell Flour Mills and UACN Property Development Company (UPDC).

A review of the investment showed that Eterna Plc led gainers’ table during the day, shedding 9.97 per cent to close at N7.50 kobo while UDPC followed with a gain of 9.74 per cent to N1.69 kobo. AIICO Plc added 8.42 per cent to N1.03 kobo. GlaxoSmithKline gained 7.94 per cent to close at N6.80 kobo. Honeywell Flour Mills increased by 7.45 per cent to close at N3.46 kobo.

On the contrary, Ikeja Hotel recorded the highest loss during the day, dropping by 10 per cent to close at N1.26 kobo while SCOA Plc followed, dropping 9.43 per cent to close at N1.44 kobo. ABC Transport dipped by 8.33 per cent to close at 33 kobo. Champion Breweries depreciated by 4.55 per cent to close at N2.10 kobo. Japaul Gold fell by 3.85 per cent to close at 50 kobo.

However, the total volume of trades declined by 5.6 per cent to 186.327 million units, valued at N1.794 billion, and exchanged in 3,595 deals. Transactions in the shares of Sovereign Trust Insurance topped the activity chart with 19.672 million shares valued at N4.643 million. Lafarge Africa followed with 17.431 million shares worth N382.415 million, while Honeywell Flour Mills traded 15.038 million shares valued at N52.410 million.

Mutual Benefits Assurance traded 14.654 million shares valued at N4.520 million, while UPDC transacted 10.395 million shares worth N17.324 million.

Meanwhile, Eterna announced on the Exchange the acquisition of 794.970 million shares, representing 60.98 per cent equity stake by Preline Limited as part of the divestment process of six of its substantial shareholders.

– Theguardian

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