Purchase of Stocks at Cheap Prices Buoys Market by 0.19%

By Dipo Olowookere

The Nigerian Stock Exchange (NSE) appreciated on Tuesday by 0.19 percent, reducing the year-to-date loss to 19.00 percent.

This was made possible by the purchase of stocks presently trading at cheap prices by investors, resulting into 19 shares closing green and 10 equities finishing red.

However, the trading activity was lower than the previous session as the volume of shares traded by investors declined 28.91 percent to 330.1 million from 464.4 million, while the value of transacted stocks reduced by 7.67 percent to N3.7 billion from N3.9 billion, with the number of trades going down by 22.47 percent to 4,561 deals from 5,883 deals.

These trades were dominated by banking stocks and GTBank was the most attractive to market participants. The lender traded 78.9 million units of its stocks worth N1.3 billion.

Zenith Bank exchanged 77.9 million shares valued at N852.9 million, Access Bank transacted 36.0 million stocks worth N198.4 million, FBN Holdings traded 24.7 million units for N96.4 million, while UBA transacted 18.8 million equities valued at N84.4 million.

Business Post reports that the buying pressure at the market yesterday boosted the All-Share Index (ASI) by 40.18 points to 21,741.16 points from 21,700.98 points and increased the market capitalisation by N21 billion to N11.330 trillion from N11.309 trillion.

It was observed that stocks in three sectors were majorly responsible for the market closing in the green territory.

The energy sector gained 0.25 percent, the insurance index improved by 0.12 percent, while the industrial goods counter appreciated by 0,02 percent. However, the banking index declined by 0.33 percent, while the consumer goods space depreciated by 0.24 percent.

Stanbic IBTC was the day’s best performing stock, rising by N2.25 to N26.10 per share. CAP gained 50 kobo to sell at N21.50 per unit, Custodian Investment rose by 25 kobo to trade at N5.90 per share, Zenith Bank also garnered 25 kobo to finish at N10.95 per unit, while SAHCO moved up by 20 kobo to N2.51 per share.

On the flip side, Conoil suffered the heaviest loss, N1.45, to close at N13.15 per share. NASCON lost 90 kobo to sell at N8.50 per share, Union Bank depreciated by 50 kobo to N6 per unit, Cadbury Nigeria dropped 50 kobo to quote at N5.15 per share, while Ecobank fell by 40 kobo to N4.05 per unit.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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