Dangote Cement Lifts Nigerian Stock Market by 1.23%

By Dipo Olowookere

The Nigerian stock market rebounded by 1.23 per cent on Wednesday on the back of renewed buying pressure, especially in the industrial goods space influenced by an interest in the shares of Dangote Cement.

The cement firm gained 8.84 per cent to close at N240.00 and was trailed by Chams, which appreciated by 4.35 per cent to trade at 24 Kobo. Coronation Insurance rose by 2.86 per cent to sell for 36 Kobo, Oando increased its value by 2.09 per cent to N4.39, and Nigerian Exchange (NGX) Group chalked up 1.50 per cent to trade at N20.30.

Conversely, MRS Oil lost 9.65 per cent during the session to settle at N11.70, Trans Nationwide Express fell by 9.33 per cent to 68 Kobo, UPDC REIT declined by 8.33 per cent to N2.75, Unity Bank dropped 6.67 per cent to 42 Kobo, and UBA depreciated by 4.93 per cent to N6.75.

Business Post reports that despite the gains of the midweek session, investor sentiment remained weak as the exchange ended with 23 price losers and nine price gainers, indicating a negative market breadth.
This was due to the sell-offs in key sectors of the bourse, with the insurance counter losing 1.07 per cent. The banking index went down by 0.90 per cent, and the consumer goods sector fell by 0.18 per cent.

However, the industrial goods space gained 3.98 per cent, and the energy sector grew by 0.21 per cent.

As a result, the All-Share Index (ASI) expanded by 537.29 points to 44,283.02 points from 43,745.73 points, and the market capitalisation garnered N293 billion to close at N24.120 trillion, in contrast to Tuesday’s value of N23.827 trillion.

During the session, the volume of shares, the value of trades, and the number of deals depreciated by 10.10 per cent, 61.97 per cent, and 7.64 per cent, respectively. Investors traded 155.4 million equities worth N1.5 billion in 3,796 deals compared with the 172.9 million equities worth N4.0 billion transacted in 4,110 deals in the preceding session.

Sterling Bank recorded the highest trading volume, 24.3 million stocks. Access Holdings traded 23.5 million equities, FBN Holdings exchanged 14.3 million shares, GTCO sold 10.2 million stocks, and Fidelity Bank traded 10.0 million equities.