By Habibatu Aliu
For gains recorded by many highly capitalised stocks, especially Dangote Cement and MTN Nigeria, transactions in the tin equities sector of the Nigerian Exchange Limited (NGX) reversed negative sentiments, as market capitalisation advanced by N108 billion.
At the close of trading yesterday, the All Share Index (ASI) rose by 197.20 absolute points, representing a gain of 0.35 percent to close at 55,801.14 points. Also, investors gained N108 billion in value as market capitalisation increased 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.
Analysts at United Capital Plc predicted that the overall bullish sentiments in the equities market would linger.
“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.”
Vetiva Dealings and Brokerage said: “In the absence of large volume trades, we expect the market to revert to the prior level, as investors continue to cherry-pick attractive counters across the board.”
As measured by market breadth, market sentiment was mixed, as 18 stocks appreciated while 18 constituted the losers chart.
Trans-Nationwide Express recorded the highest price gain of 9.88 percent to close at 89 kkobos per share while Cutix followed with a gain of 8.50 per cent to close at N2.17, while FTN Cocoa processors were up by 7.69 per cent to close at 28 kobos.
Sovereign Trust Insurance rose by 7.14 per cent to close at 30 kobos, while Honeywell Flour Mills appreciated by 6.39 per cent to close at N2.33 kobo.
NGX Group garnered 5.66 per cent to close at N28. Linkage Assurance appreciated by 4.44 per cent to close at 47 kobos.
Custodian and Allied Insurance advanced by 3.51 per cent to close at N5.90 kobo. Cornerstone Insurance gained 3.17 per cent to close at 65 kobos. Mutual Benefit appreciated by 3.13 per cent to close at 33 kobos. Union Bank advanced by 2.27 per cent to close at N6.75 kobo.
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 kobos, while Chams Holding Company shed 7.41 per cent to close at 25 kobos, 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 kobos, per share. Mansard declined by 4.31 per cent to close at N2 while African Prudential shed 3.23 per cent to close at N6.
First City Monument Bank dropped 3.15 per cent to close at N4.31 kobo. Unilever declined by 2.17 per cent to close at N13.50 kobo. UPDC shed 1.90 per cent to close at N1.03 kobo. Champion Breweries shed 1.85 per cent to close at N4.78 kobo.
United Bank for Africa also lost 1.75 per cent to close at N8.40 kobo.
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.
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.