Investors gain N18bn as shares of MTN Nigeria, Zenith Bank soar

By Kayode Tokede

The equities market on the Nigerian Exchange (NGX) Limited rose by 0.09 per cent or N18billion amid renewed positive investors’ sentiment.

As a result, the All-Share Index (ASI) gained 34.32 basis points, representing a growth of 0.09 per cent to close at 38,636.15 basis points. Similarly, the overall market capitalisation value rose by N18 billion to close at N20.220 trillion.

Sector performance was negative with the Oil & Gas (-0.05 per cent), Banking (-0.02 per cent) and Industrial (-0.01 per cent) sectors all closing down today, while the Consumer Goods (+0.23 per cent) sector closed in the green.

The uptrend was also driven by price appreciation in medium and large capitalised stocks amongst which are; Guinness Nigeria, MTN Nigeria Communications (MTNN), FBN Holdings (FBNH), Zenith Bank and Vitafoam Nigeria.

As measured by market breadth, market sentiment remained negative, as 22 stocks declined relative to 14 gainers. Guinness Nigeria recorded the highest price gain of 9.96 per cent to close at N26.50, per share. Meyer Plc followed with a gain 8.16 per cent to close at 53 kobo, while Wema Bank rose by 5.26 per cent to close at 60 kobo.

Chams Plc appreciated by 4.76 per cent to close at 22 kobo, while Caverton Offshore Support Group rose by 2.56 per cent to close at N2.00, per share.

On the other hand, Northern Nigeria Flour Mills (NNFM) led the losers’ chart by 10 per cent to close at N5.40, per share. Fidson Healthcare followed with a decline of 9.89 per cent to close at N4.28, while Cutix shed 9.78 per cent to close at N2.03,  per share.

Sterling Bank shed 8.33 per cent to close at N1.65, while Wapic Insurance depreciated by eight per cent to close at 46 kobo, per share.

The total volume of trades decreased marginally by 0.03 per cent to 278.044 million units, valued at N2.272 billion, and exchanged in 3,989 deals.

Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 46.22 million shares valued at N34.570 million. UAC of Nigeria (UACN) followed with 32.595 million shares worth N311.503 million, while Fidelity Bank  traded 28.472 million shares valued at N70.727 million.

Access Bank traded 22.685 million shares valued at N183.242 million, while Zenith Bank transacted 19.618 million shares worth N431.427 million.

According to Investment One research, “The equities market closed up today due to the gains recorded in the Consumer Goods sector and MTN Nigeria.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space. We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”

Analysts at Afrinvest Limited said that “Investor sentiment remains weak although, current stock prices are attractive for bargain hunting.”