Nigeria’s largest quoted company and most capitalised financial services institution led the stock market to a major recovery yesterday despite continuing selloffs within mid and small-cap companies.
More than two out of every three deals at the Nigerian Stock Exchange (NSE) were closed at discount as trading resumed after the Eid-ul-Kabir holiday, but gains by large-cap stocks in the cement and banking sectors lifted the equities market to its major positive close in many weeks.
With 25 losers to 11 gainers, gains by Dangote Cement Plc and Guaranty Trust Bank Plc boosted the overall market position. The All Share Index (ASI)-the main index that tracks share prices at the Exchange rose by 1.57 per cent from its opening value of 34,663.48 points to close at 35,206.16 points. Aggregate market value of all quoted equities increased by N198 billion to close at N12.853 trillion as against its opening value of N12.655 trillion.
The rally moderated the negative average year-to-date return to -7.94 per cent.
Dangote Cement-Nigeria’s most capitalised quoted company led the rally with a gain of N15 to close at N230. Guaranty Trust Bank-Nigeria’s most capitalised financial services company, followed with a gain of 85 kobo to close at N37.80. Dangote Flour Mills rose by 50 kobo to close at N8.20. Oando added 25 kobo to close at N5 while FBN Holdings inched up by 5.0 kobo to close at N9.65 per share.
Most sectoral indices closed positive, reflecting the weights of the large-cap stocks. The NSE Industrial Goods Index rose by 6.42 per cent. The NSE Oil and Gas Index rose by 0.10 per cent. On the other hand, the NSE Banking Index declined by 0.52 per cent.
Total turnover stood at 220.71 million shares valued at N2.53 billion in 3,287 deals. Union Bank of Nigeria led activities chart with a turnover of 54.33 million shares valued at N436.11 million. Zenith Bank followed with a turnover of 25.99 million shares worth N571.42 million while FBN Holdings placed third with a turnover of 14.19 million shares worth N138.64 million.
On the negative side, Total Nigeria led the losers with a drop of N5.40 to close at N177.60. Okomu Oil Palm declined by N3.35 to close at N71.20. Lafarge Africa dropped by N1.55 to close at N26.25. Ecobank Transnational Incorporated dipped by N1.30 to close at N19.20 while International Breweries lost N1.20 to close at N34 per share.
“In the interim, we expect sentiments to remain downbeat underpinned by continued apathy towards the market as the 2019 electoral cycle draws nearer amid sustained sells in emerging and frontier markets by offshore investors,” SCM Capital stated.