Bulls Resurface On Equities Market As Cap Gains N108bn
Bullish sentiments resurfaced in the domestic equities market yesterday as bargain hunting in Dangote Cement Plc and 17 others triggered N108 billion increase in the overall market capitalisation.
The All Share Index (ASI) rose by 197.20 absolute points, representing a gain of 0.35 per cent to close at 55,801.14 points. Also, investors gained N108 billion in value as market capitalisation went up to N30.398 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Nigerian Exchange Group, MTN Nigeria Communications (MTNN), Guaranty Trust Holding Company (GTCO) and Custodian Investment.
Looking ahead, United Capital Plc expected the overall bullish sentiments in the equities market to linger, saying this is hinged on the view that investors’ bullish sentiments will prevail amid post-election uncertainties and a depressed interest rate environment, particularly at the short end of the curve.
“We foresee opportunities for BUY-SIDE investors to increase holdings (in the near term) on fundamentally sound stocks with improved valuation and dividend yield,” United Capital said.
As measured by market breadth, market sentiment was mixed, as an equal number of stocks (18) gained and lost. Trans-Nationwide Express recorded the highest price gain of 9.88 per cent to close at 89 kobo, per share. Cutix followed with a gain of 8.50 per cent to close at N2.17, while FTN Cocoa processors up by 7.69 per cent to close at 28 kobo, per share.
Sovereign Trust Insurance rose by 7.14 per cent to close at 30 kobo, while Honeywell Flour Mills appreciated by 6.39 per cent to close at N2.33, per share.
On the other hand, MRS Oil Nigeria led the losers’ chart by 9.98 per cent to close at N27.95, per share. Associated Bus Company followed with a decline of 7.89 per cent to close at 35 kobo, while Chams Holding Company shed 7.41 per cent to close at 25 kobo, per share.
Ardova lost 6.20 per cent to close at N17.40, while Royal Exchange shed 5.33 per cent to close at 71 kobo, per share.
The total volume traded declined by 4.2 per cent to 152.743 million units, valued at N3.573 billion, and exchanged in 3,293 deals.
Transactions in the shares of Courteville Business Solutions topped the activity chart with 34.604 million shares valued at N16.610 million. United Bank for Africa (UBA) followed with 15.001 million shares worth N127.311 million, while GTCO traded 12.749 million shares valued at N335.934 million.
AXA Mansard Insurance traded 8.282 million shares valued at N16.584 million, while Dangote Cement transacted 7.324 million shares worth N2.088 billion.