Nigeria’s Stock Market Surges 1.65% on Renewed Buying Interest

By Dipo Olowookere

It was a bright start to the week for Nigeria’s stock market on Monday after it chalked up 1.65 per cent as a result of renewed buying interest from investors.

One of the major equities responsible for the surge recorded by the Nigerian Exchange (NGX) Limited yesterday was Dangote Cement, which helped its sector, industrial goods, gain 5.37 per cent at the close of business.

Bargain-hunting activities were also witnessed in the financial services sector, with the banking space rising by 2.34 per cent and the insurance counter growing by 0.67 per cent. Also, the energy index improved by 0.88 per cent, while the consumer goods segment lost 0.06 per cent to profit-taking.

When Customs Street ended trading for the session, the All-Share Index (ASI) increased by 4,068.27 points to 251,290.54 points from 247,222.27 points, and the market capitalisation expanded by N2.642 trillion to N163.161 trillion from N160.519 trillion.

Dangote Cement led the gainers’ chart after it went up by 10.00 per cent to N1,222.10. Honeywell Flour jumped by 9.78 per cent to N19.65, Royal Exchange appreciated by 9.18 per cent to N1.07, NGX Group improved by 8.20 per cent to N165.00, and First Holdco added 7.56 per cent to close at N155.00.

The losers’ table was topped by ABC Transport after crashing by 9.59 per cent to N6.60. Caverton was down by 9.38 per cent to N4.35, Livestock Feeds depreciated by 9.09 per cent to N15.50, Champion Breweries declined by 8.16 per cent to N9.00, and PZ Cussons lost 7.61 per cent to finish at N63.70.

Business Post reports that despite the gains, investor sentiment was weak, as the bourse ended with 24 price gainers and 30 price losers, representing a negative market breadth index.

The activity level was lower than the previous trading day, as the trading volume slipped by 46.13 per cent to 329.5 million shares from 611.7 million shares. But the trading value soared by 10.39 per cent to N25.5 billion from N23.1 billion, and the number of deals climbed by 30.12 per cent to 43,700 deals from 33,585 deals.

Zenith Bank led the activity chart, with a turnover of 25.9 million units worth N3.1 billion, UBA transacted 24.0 million units valued at N979.6 million, Access Holdings exchanged 18.0 million units for N487.8 million, Fidelity Bank sold 17.5 million units worth N397.0 million, and First Holdco traded 14.4 million units valued at N2.1 billion.