The modest price recovery in the previous three trading sessions broke into a major rally on Tuesday as the stock market reopened to increased bargain-hunting transactions.
Total turnover at the Nigerian Stock Exchange (NSE) spiraled upward by 247 per cent while the average day-on-day return stood at 0.98 per cent, equivalent to a gain of N87 billion.
With nearly two gainers for every loser, all major indices at the NSE closed on the upbeat. The All Share Index (ASI), the value-based common index that tracks prices at the NSE, rose by 0.98 per cent to close at 26,071.16 points as against its opening index of 25,817.69 points.
Aggregate market value of all quoted equities also improved from its opening value of N8.883 trillion to close at N8.970 trillion, representing a gain of N87 billion. The negative average year-to-date return, though still negative, improved to -8.93 per cent.
Total turnover stood at above average with the exchange of 376.69 million shares valued at N2.41 billion in 2,885 deals.
Most sectoral indices closed on the positive. The NSE Oil & Gas Index jumped by 6.3 per cent. The NSE Industrial Goods Index appreciated by 0.9 per cent while the NSE Banking Index improved by 0.7 per cent. However, the NSE Insurance Index declined by 0.7 per cent while the NSE Consumer Goods Index slipped by 0.02 per cent.
Oil and gas stocks led the rally. Seplat Petroleum Development Company topped the gainers’ list with a gain of N34.85 to close at N374.85. Total Nigeria followed with a gain of N13.80 to close at N289.85. Forte Oil rose by N10.88 to close at N117.11.
Dangote Cement, the most capitalised stock at the Exchange, chalked up N2 to close at N162. Guaranty Trust Bank, the most capitalised banking stock, rose by 46 kobo to close at N23.80 per share. Dangote Flour Mills added 29 kobo to close at N4.09. Oando gathered 28 kobo to close at N4.44 while Ecobank Transnational Incorporated and Lafarge Africa added 18 kobo each to close at N10.12 and N39 respectively.
On the negative side, Mobil Oil Nigeria led the losers’ list with a loss of N5 to close at N300. Guinness Nigeria followed with a loss of N2.30 to close at N75.60. Seven-Up Bottling Company declined by N1 to close at N129. Union Bank of Nigeria dropped by 21 kobo to close at N4.26. Zenith Bank lost 16 kobo to close at N14.34 per share while Portland Paints and Products Nigeria dropped by 11 kobo to close at N2.18 per share.
Wema Bank was the most active stock with 100.9 million shares valued at N52.5 million. Diamond Bank followed with 84 million shares worth N70.2 million while FCMB Group placed third with 83.2 million shares worth N87.5 million.
Market analysts said the rally in the oil and gas sector might not be unconnected with the global rally in the oil and gas sector as crude oil price rally above $55 per barrel.
Analysts added that investors might also be taking early positions ahead of the December 31, 2016 year-end results, especially since several stocks at the stock market are currently trading at their lowest prices in recent years.
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