Investors’ appetite for cheap stocks lifts NSE indices further by N53b

As investors take advantage of the cheap valuation of some stocks, transactions on the trading floor of the Nigerian Stock Exchange (NSE) continued in an upbeat yesterday, as market capitalisation rises further by N53 billion.

Yesterday, the All Share Index (ASI) was up by 141.68 absolute points, representing an increase of 0.46 per cent to close at 30,878.56 points. Similarly, the market capitalisation increased by N53 billion, closing at N11.515 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Guaranty Trust Bank, Stanbic IBTC Holdings, Fidelity Bank, Zenith Bank and FBN Holdings.Analysts at Afrinvest Limited said: “We believe the local bourse may continue to witness buying interest in subsequent sessions as some investors take advantage of the cheap valuation of fundamentally good stocks. Nevertheless, we do not rule out the possibility of speculative trading buoying performance in the near term.”

Market breadth closed positive, recorded 21 gainers against 10 losers. First Aluminium recorded the highest price gain of 9.68 per cent, to close at 34 kobo per share. Fidelity Bank followed with a gain of 9.57 per cent to close at N2.29, while Union Diagnostic & Clinical Services rose 7.69 per cent to close at 28 kobo, per share.

Mutual Benefit Assurance appreciated by five per cent to close at 21 kobo, while Sterling Bank up by 4.90 per cent to close at N2.14, per share. On the other hand, Resort Savings and Loans led the losers’ chart by 8.33 per cent, to close at 22 kobo, per share. Sovereign Trust Insurance followed with a decline of 4.55 per cent to close at 21 kobo.

UAC of Nigeria lost 4.49 per cent to close at N8.50, per share. NEM Insurance shed 4.40 per cent to close at N2.39, while May and Baker Nigeria depreciated by 2.45 per cent, to close at N2.39, per share.

Total volume of trades increased by 53.5 per cent to 376.26 million units, valued at N2.97 billion and exchanged in 3,405 deals. Transactions in the shares of Access Bank topped the activity chart with 155.84 million shares valued at N875.21 million.

United Bank for Africa (UBA) followed with 62.12 million shares worth N450.81 million, while FCMB Groups traded 32.56 million shares valued at N63.26 million.Zenith Bank traded 31 million shares valued at N678.83 million, while Fidelity Bank transacted 26.17 million shares worth N58.6 million.