The uptrend at the Nigerian stock market continued on Wednesday as equities rallied additional gain of N52 billion to cross the N9 trillion mark, the highest point in recent period.
With a gain of N197 billion last week and additional gain of N62 billion on the opening of the market on Tuesday, aggregate market value of quoted equities on the Nigerian Stock Exchange (NSE) spiraled across the N9 trillion mark to reach N9.027 trillion on Wednesday.
With two advancers to every decliner, aggregate market value of all quoted companies on the NSE rose from its opening value of N8.975 trillion to close at N9.027 trillion. The All Share Index (ASI) – the value-based common index that tracks prices at the Exchange, rose by 0.58 per cent from 25,965.18 points to close at 26,116.79 points. The average year-to-date return, though still negative, improved to -2.82 per cent.
Sectoral indices showed widespread positive sentiments. The NSE Banking Index rose by 1.5 per cent. The NSE Oil & Gas Index appreciated by 0.6 per cent. The NSE Consumer Goods Index returned 0.4 per cent. The NSE Insurance Index inched up by 0.3 per cent while the NSE Industrial Goods Index closed flat.
Pricing analysis showed that most transactions closed on premium as the market continued to trend on the sellers’ side. Unilever Nigeria led the 27-stock gainers’ list with a gain of N1.69 to close at N33.50. Forte Oil rose by N1 to close at N44. Guinness Nigeria rallied 99 kobo to close at N61. UAC of Nigeria chalked up 65 kobo to close at N14.40.
Ashaka Cement rose by 52 kobo to close at N10.96 per share. Nigerian Breweries added 51 kobo to close at N124.01. Oando gathered 48 kobo to close at N6.54. Stanbic IBTC Holdings chalked up 44 kobo to close at N 27.45. United Bank for Africa rose by 37 kobo to close at N6.28 while Zenith Bank gathered 25 kobo to close at N15.70 per share.
On the downside, Total Nigeria led the 13-stock losers’ list with a loss of N10 to close at N255. Seven-Up Bottling Company dropped by N4.75 to close at N90.25. Nascon Allied Industries declined by 42 kobo to close at N8.05. UACN Property Development Company dropped by 5.0 kobo to close at N1.75. Continental Reinsurance and Unity Bank dropped by 4.0 kobo each to close at N1.07 and 54 kobo respectively. Custodian and Allied Insurance declined by 3.0 kobo to close at N3. United Capital and Flour Mills of Nigeria lost 2.0 kobo to close at N2.85 and N17.98 while C & I Leasing slipped by 1.0 kobo to close at 65 kobo per share.
Total turnover stood at 264.49 million shares valued at N2.90 billion in 3,958 deals. Banking stocks dominated the top activities chart. Zenith Bank was the most active with 41.88 million shares worth N652.18 million. Guaranty Trust Bank followed with 37.75 million shares worth N1.01 billion while United Bank for Africa placed third with 34.03 million shares valued at N205.21 million.
Analysts attributed the sustained rally at the stock market to improvement in the macroeconomic environment as Nigeria steadily moves to exit recession and restart growth.
Most analysts however remained cautious of long-term sustained recovery of the market citing the tendency to speculation and profit-taking by portfolio investors and potential political and economic risks.
RipplesNigeria ….without borders, without fears
Join the conversation
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...