Market rebounds as bellwethers lift NSE’s index by N177 billion

After days of downturn, gains in bellwethers buoyed transactions on the equities sector of the Nigerian Stock Exchange (NSE), yesterday, as market capitalisation advanced by N177 billion.

Specifically, at the close of trading, Thursday, the All Share Index (ASI) increased by 338.74 absolute points or 1.40 per cent to close at 24,512.27 points. Similarly, the market capitalisation gained N177 billion to close at N12.787 trillion.

The upturn was impacted by gains recorded in medium and large capital stocks, including Dangote Cement, MTN Nigeria Communications, Custodian Investment, Africa Prudential, and FBN Holdings (FBNH) .
 
Analysts at APT Securities and Funds Limited, said: “It will be notable to point out that half year financial reports have started rolling in. Yesterday, Africa Prudential, Cadbury Nigeria, and CAP Plc joined the half-year financial release train amongst others.

“We advise for a positioning in fundamentally justified stocks at this time as market is set to rally in response to half year corporate actions.”Analysts at Afrinvest Limited predicted that the local bourse would close the week positive on the back of sustained bargain-hunting.

Market sentiment, as measured by market breadth, was static as 11 stocks gained, relative to 11 losers. Dangote Cement recorded the highest price gain of 10 per cent to close at N134.20 per share. Jaiz Bank followed with 7.41 per cent to close at 58 kobo, and Custodian Investment garnered 3.09 per cent to close at N5.00, per share.

Africa Prudential rose 2.74 per cent to close at N4.12, while Sterling Bank edged up 1.69 per cent to close at N1.20, per share. On the other hand, Neimeth International Pharmaceuticals led the losers’ chart by 6.67 per cent to close at N1.40, per share. Mutual Benefits Assurance followed with 4.76 per cent to close at 20 kobo, and BUA Cement lost 3.50 per cent to close at N40.00, per share.

Dangote Sugar Refinery shed 2.50 per cent to close at N11.70, while Caverton Offshore Support Group fell 2.17 per cent to close at N1.80, per share. However, the total volume traded slipped 59.2 per cent to 164.289 million shares worth N2.126 billion, traded in 2,986 deals. Transactions in the shares of FBNH topped the activity chart with 42.675 million shares valued at N211.27 million. Custodian Investment followed with 20.036 million shares worth N100.178 million, and Zenith Bank traded 17.937 million shares at N278.97 million.Guaranty Trust Bank traded 11.671 million shares valued at N251.195 million, while United Bank for Africa (UBA) transacted 8.443 million shares worth N51.507 million.