Story by Kayode Tokede
The Nigeria equities market on Thursday recorded its biggest gain in over six months as investors investment’s gained by N245 billion as the capitalisation crossed N13 trillion.
This development also saw the major sectors of the market closing positive; with the banking sector seeing the biggest move.
Analysts at Cordros capital said, “equity market may have rediscovered its lost aura as the increasingly less attractive fixed income instruments – thanks to the Central Bank of Nigeria (CBN’s) heavy-handedness – induced alpha-seeking investors to gush to risky assets.
“To be clear, packs of gains in high dividend-yielding banking stocks ensured the market posted its best daily performance since May 28, 2019. The month-to-date return turned positive at 1.85per cent, the year-to-date loss moderated markedly to -14.60per cent.”
The All Share Index (ASI) rose by 504.00 points or 1.91 per cent to 26,843.11 basis points from 26,339.11 basis points the market closed on Wednesday.
Accordingly, investors gained N245 billion in value as market capitalisation went up to N13.067 trillion from N12.821 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Guinness Nigeria, Guaranty Trust Bank, Zenith Bank, Dangote Sugar Refinery and Access Bank.
Capital market analysts attributed strong bullish trend to the declining yields on fixed income instruments.
Analysts at Afrinvest Limited stated that “Following the marked improvement in sentiment in the equities market, we expect a mixed market performance in the short term as bulls continue to battle bears for dominance.”
Market breadth closed strongly positive as 34 stocks recorded gains relative to three losers. Ekocorp Plc recorded the highest price gain of 9.79 per cent, to close at N3.70, per share. Caverton Offshore Support Group followed with a gain 9.76 per cent to close at N2.70, while Guinness Nigeria appreciated by 9.70 per cent to close at N26.00, per share.
United Capital went up by 9.66 per cent to close at N2.27, while FBN Holdings appreciated by 9.65 per cent to close at N6.25, per share. On the other hand, Ikeja Hotel led the losers’ chart by 9.38 per cent, to close at 87 kobo, per share. Champion Breweries followed with a decline of 9.09 per cent to close at 90 kobo, while MTN Nigeria shed 0.12 per cent to close at N121.90, per share.
Total volume traded increased by 2.34 per cent to 624.84 million shares, worth N10.02 billion, and traded in 6,426 deals. Transactions in the shares of Zenith Bank topped the activity chart with 167.92 million shares valued at N3.19 billion. Access Bank followed with 99.3 million shares worth N1.06 billion, while United Bank for Africa (UBA) traded 67.78 million shares valued at N500.25 million.
Nigerian Breweries traded 36.29 million shares valued at N1.72 billion, while Sterling Bank transacted 31.43 million shares worth N68.45 million.