The Nigerian All-Share Index posted a gain of 9.1% in the month of January, its best January return in about four years. Stocks have now posted positive returns in January for the third year running.
Nigerian stocks have braced against all odds facing global markets to post double-digit returns as investors poured into large-cap stocks pushing the total market valuation of stocks into N25.1 trillion from N22.29 trillion, a N2.9 trillion gain.
A major driver for the performance of equities was the SWOOTs representing Stocks Worth Over One Trillion naira only. With the addition of BUA Foods and the gains recorded by Airtel, Dangote Cement and MTN. SWOOTs saw their market cap rise to N17.7 trillion, about 70.5% of the total market capitalization of the stock exchange.
BUA Foods listed during the month strengthening the size of one of Nigeria’s indigenous conglomerates to a combined N3.5 trillion.
BUA Foods gained 60% in January making it the second highest gainer on the exchange.
BUA Cement also gained 6% during the month while Dangote Cement and MTN closed flat.
However, Airtel also recorded large gains adding a whopping 33% to its market share helping it to the status of the most capitalized stock on the exchange.
A total of 65 stocks gained out of which 33 posted double digit gains.
Notable gainers also include Guinness, Wema Bank, Seplat all of which recorded over 20% gains during the month.
Nigerian bank index was also the best performer ending the month with over 8% gain.
All the major banks (except Unity Bank) posted gains with Ecobank. Wema, Jaiz and Sterling Banks leading the pack with 44%, 22%, 21% and 15% pop respectively.
– Nairametrics