Market Gains N146bn as Investors Bet on Industrial Goods Stocks

By Dipo Olowookere

The local equity market rebounded by 0.32 per cent on Tuesday on renewed interest in industrial goods stocks, a day after they caused the downfall of the Nigerian Exchange (NGX) Limited due to profit-taking.

Business Post reports that traders were more interested in BUA Cement and Lafarge Africa because of their prospects, helping their sector gain 1.39 per cent at the close of business.

The banking index increased during the trading session by 0.69 per cent, and the insurance counter improved by 0.23 per cent, while the consumer goods sector depreciated by 0.11 per cent, with the energy space closing flat.

The positive outcome of the session raised the market capitalisation of the stock exchange by N146 billion to N38.941 trillion from N38.795 trillion, as the All-Share Index (ASI) went up by 227.91 points to 70,840.72 points from 70,612.81 points.

As for the market breadth index, it was positive yesterday after the bulls outnumbered the bears at 35 and 16, respectively, indicating a strong investor sentiment.

Northern Nigerian Flour Mills topped the gainers chart after chalking up 10.00 per cent to close at N19.80, MuCure rose by 9.98 per cent to N4.74, C&I Leasing appreciated by 9.97 per cent to N3.75, Meyer jumped by 9.96 per cent to N2.98, and Livingtrust Mortgage Bank soared by 9.96 per cent to N2.98.

On the flip side, Red Star Express topped the losers’ table after it dropped 9.76 per cent to trade at N2.96, FTN Cocoa depreciated by 9.29 per cent to N1.66, Mutual Benefits lost 5.77 per cent to finish at 49 Kobo, Caverton slumped by 4.83 per cent to N1.38, and Prestige Assurance weakened by 4.44 per cent to 43 Kobo.

Despite the gains reported by the market on Tuesday, the level of activity waned as the trading volume, value and the number of deals decreased by 30.99 per cent, 56.41 per cent, and 14.38 per cent apiece.

A total of 327.4 million equities valued at N3.4 billion were traded in 6,533 deals during the session versus the 474.4 million equities worth N7.8 billion traded in 7,630 deals on Monday.

Japaul maintained its top position on the activity chart with the sale of 44.7 million stocks for N82.8 million, Fidelity Bank traded 36.4 million shares worth N326.8 million, UBA transacted 26.7 million equities valued at N555.0 million, Oando sold 21.3 million stocks for N230.4 million, and Jaiz Bank traded 18.8 million equities valued at N30.3 million.