Equities market rebounds by N167bn over gain in Dangote Cement, Unilever, others

By Kayode Tokede

After days of persistent profit-taking by investors, transactions on the Nigerian Stock Exchange (NSE) rebounded on Thursday by 0.78 per cent following buying interest in Dangote Cement Plc, Unilever Nigeria Plc, others.

Specifically, the All-Share Index rose by 318.29 basis points or 0.78 per cent to close at 41,014.30 basis points compared with 40,696.01 basis points posted on Wednesday.

Also, the market capitalisation, which opened at N21.289 trillion inched higher by N167 billion or 0.78 per cent to close at N21.456 trillion.

Sector performances were negative today with the Industrial (+2.57 per cent) being the lone gainer, while Banking (-2.98 per cent), Oil & Gas (-0.90 per cent) and Consumer Goods (-0.32 per cent) sectors all closed in the red.

The gain was driven by price appreciation in large and medium capitalised stocks amongst which are: Dangote Cement, Mutual Benefits Assurance, Sovereign Trust Insurance, Vitafoam and Unilever.

Dangote Cement dominated the gainers’ chart in percentage terms, gaining 7.04 per cent to close at N228 per share.

Mutual Benefits Assurance followed with 5.41 per cent to close at 39k, while Sovereign Trust Insurance appreciated by 3.70 per cent to close at 28k per share.

Vitafoam rose by 3.33 per cent to close at N9.30, while Unilever appreciated by 2.57 per cent to close at N13.95 per share.

On the other hand, Linkage Assurance and Livestock Feeds led the losers’ chart in percentage terms, losing 10 per cent each to close at 54k and N2.25 per share, respectively.

Nigerian Aviation Handling Company dipped 9.96 per cent to close at N2.08, per share.

Northern Nigeria Flour Mills lost 9.88 per cent to close at N7.02, while Portland Paints & Products shed 9.84 per cent to close at N2.84 per share.

Also, the total volume of shares traded rose by 247.4 per cent as investors bought and sold 1.27 billion shares worth N6.39 billion in 6,573 deals.

This was against 366.86 million shares valued at N5.84 billion achieved in 5,718 deals on Wednesday.

Transactions in the shares of LivingTrust Mortgage Bank, formerly Omoluabi Mortgage Bank, topped the activity chart with 796.45 million shares worth N493.80 million.

Transcorp followed with 55.75 million shares valued at N50.54 million, while FBN Holdings traded 51.94 million shares worth N364.51 million.

United Bank for Africa accounted for 48.78 million shares valued at N380.21 million, while Zenith Bank transacted 37.11 million shares worth N885.3 million.

Analysts at Investment One said, “The equities market closed up today due to the gain recorded in the Industrial sector.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns amidst a low interest-rate environment.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”