Nigerian Stocks Gain 1.20% Amid Weak Investor Sentiment

By Dipo Olowookere

The uptrend seen lately at the Nigerian Stock Exchange (NSE) continued on Tuesday with the market closing 1.20 per cent higher.

As it was in the previous session, yesterday’s outcome was boosted by the interest in the equities of Dangote Cement as investors are buying the stock because of the share buy-back programme of the company scheduled for next week.

At the close of business on Tuesday, the All-Share Index (ASI) increased by 450.21 points to settle at 37,893.61 points in contrast to the previous 37,443.40 points, while the market capitalisation went up by N236 billion to close at N19.806 trillion as against N19.570 trillion it ended on Monday.

Also, the industrial goods and banking sectors closed stronger yesterday by 3.35 per cent and 0.06 per cent respectively, while the insurance, energy and consumer goods sectors closed weaker by 0.49 per cent, 0.33 per cent and 0.24 per cent respectively.

During the session, a total of 442.2 million stocks worth N10.3 billion were traded in 4,948 deals compared with the 427.1 million shares worth N3.3 billion transacted in 5,258 deals the previous session, indicating 3.55 per cent rise in the trading volume, 210.86 per cent increase in the trading value and 5.90 per cent decline in the number of deals.

Business Post reports that Zenith Bank was the most active stock on Tuesday with the sale of 59.0 million shares worth N1.5 billion.

Axa Mansard Insurance followed with 39.3 million stocks valued at N40.1 million, GTBank exchanged 38.2 million equities for N1.3 billion, Japaul transacted 33.1 million shares for N13.0 million, while FBN Holdings traded 29.9 million equities worth N209.5 million.

Despite the gains achieved by the market yesterday, the investor sentiment as measured by the market breadth was weak as only 15 stocks appreciated in price as against the 22 price losers.

On the gainers’ table, Dangote Cement sat on top with a price appreciation of N14.60 to finish at N245 per unit, while Eterna gained 41 kobo to close at N4.51 per unit.

Cadbury Nigeria appreciated by 35 kobo to end at N9 per share, Zenith Bank improved by 20 kobo to N24.50 per unit, while UBA gained 20 kobo to trade at N8.40 per share.

Conversely, CAP ended the session as the heaviest price loser after it depreciated by 95 kobo to trade at N19.05 per unit, while GTBank declined by 50 to end at N33 per share.

Lafarge Africa also lost 50 kobo to finish at N22 per share, Red Star Express declined by 33 kobo to N3.10 per unit, while Vitafoam lost 25 kobo to settle at N7 per share.