Market cap gains N643bn to commence week positive
Transactions on the equities market of the Nigerian Exchange Limited (NGX) closed on a positive note, as market capitalisation appreciated by N643billion to commenced trading for this week positive.
The positive performance was buoyed by investors’ increased buying appetite in MTN Nigeria Communications (MTNN) and 17 others.
In summary, the NGX All-Share Index (ASI) grew by 1,232.basis points, representing a rise of 2.93 per cent, to close at 43,246.87 basis points. Similarly, the overall market capitalisation value increased by N643 billion to close at N22.569 trillion.
Sector performances were mixed today with the Consumer Goods (+0.25 per cent) and Industrial (+0.13 per cent) sectors closing in the green territory, while the Oil and Gas (-0.57 per cent) and Banking (-0.09 per cent) sectors closed negatively.
The market positive performance was driven by price appreciation in large and medium capitalised stocks which are; Airtel Africa, MTNN, Unilever Nigeria, Nigerian Exchange Group (NGXGroup) and Guinness Nigeria.
This week, United Capital Plc expected the equities market to trade sideways in the absence of bullish triggers.
However, the market breadth closed negative recording 25 losers as against 18 gainers. Airtel Africa recorded the highest price gain of 10 per cent to close at N858.00, per share.
Red Star Express followed with a gain 9.94 per cent to close at N3.43, while Cutix appreciated by 9.91 per cent to close at N6.21, per share.
MTNN went up by 9.62 per cent to close at N192.50, while Unilever Nigeria appreciated by 9.36 per cent to close at N14.60, per share. On the other hand, Conoil led the losers’ chart by 9.80 per cent to close at N23.00, per share.
Computer Warehouse Group (CWG) followed with a decline of 9.73 per cent to close at N1.02, while Custodian Investment declined by 9.47 per cent to close at N7.65, per share.
Honeywell Flour Mills shed 9.07 per cent to close at N3.31, while Africa Prudential depreciated by 4.72 per cent to close at N6.05, per share.
The total volume traded increased by 57.1 per cent to 443.606 million shares, worth N5.048 billion, and traded in 5,233 deals.
Transactions in the shares of Sterling Bank topped the activity chart with 81.232 million shares valued at N121.847 million. UAC of Nigeria (UACN) followed with 67.245 million shares worth N706.443 million, while FBN Holdings (FBNH) traded 42.236 million shares valued at N473.448 million.
Zenith Bank traded 32.622 million shares valued at N797.349 million, while Transnational Corporation of Nigeria (Transcorp) transacted 20.963 million shares worth N21.574 million.
According to analysts at Investment One research, “The equities market closed positive on the back of gains recorded in the TELCOS, Consumer Goods and Industrial sectors.
“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.”
