NSE LIVE! Equities gain N133b as Dangote rekindles market

In from Success Allantee . . .
Nigerian equities got a major lift from Dangote Cement Plc as Nigeria’s most capitalised quoted company rallied on the back of the recent opening of its new 3.0 million metric tonnes cement plant in Tanzania.
After a week-on-week loss of 1.10 per cent or N114 billion last week, a strong performance by Dangote Cement and other highly capitalised stocks boosted the market with a gain of 1.29 per cent or N133 billion yesterday.
With 18 gainers to 20 losers, total turnover of 104.46 million shares and highest turnover per stock of 16.68 million shares, the stock market was trading on a slow momentum until Dangote Cement stirred up the rally.
The benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI), rose by 1.29 per cent from its opening index of 29,834.21 points to regain its psychological base at 30,219.01 points. Aggregate market value of all quoted equities also rose correspondingly from N10.253 trillion to close at N10.386 trillion, representing an increase of N133 billion. The rally moderated the negative average year-to-date return at the stock market to -12.81 per cent.
“The market was heading for a marginal gain up until a massive rally in Dangote Cement few minutes to the close of trade uplifted the bourse,” said an analyst at Afrinvest Securities.
Dangote Cement had two weeks ago opened its new cement plant in Tanzania, expanding the group’s cement operations to 18 countries. It has scheduled to open cement plants in Senegal and South Africa before the end of this year while it has also signed contracts to construct new cement plants in 10 other countries.
Dangote Cement rallied a gain of N7.94 or 4.93 per cent, the highest in terms of value and percentage, to close at N168.95 per share. The market was also boosted by gains by some other highly capitalised stocks including Mobil Oil Nigeria, which rose by N6 to close at N154; UAC of Nigeria, which added 80 kobo to close at N28.85; Lafarge Africa added 65 kobo to close at N99.50 and Guaranty Trust Bank and Flour Mills of Nigeria, which rose by 20 kobo each to close at N23.71 and N20.90 respectively.

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On the negative side, Guinness Nigeria led the losers’ list with a drop of N3.85 to close at N146.15. Nascon Allied Industries followed with a loss of 53 kobo to close at N7.20. Cement Company of Northern Nigeria lost 37 kobo to close at N7.31. Nigerian Breweries declined by 26 kobo to close at N135.06. FBN Holdings slipped by 25 kobo to N5.75 while Skye Bank dropped by 11 kobo to close at N2.15 per share.
Total turnover stood at 104.46 million shares valued at N1.93 billion in 2,931 deals. Zenith Bank International was the most active stock with a turnover of 16.68 million shares worth N293.74 million in 229 deals.
Analysts at Afrinvest Securities said the market sentiments remained weak, noting that third quarter earnings reports by quoted companies will continue to shape the sentiment of investors in the short term.

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