By Habibat Aliu
Despite macroeconomic challenges affecting the nation’s economy, the Nigerian equities market sustained gains to close in an upbeat yesterday, as buying interest in MTN Nigeria Communications (MTNN) Plc and 15 others lifted market capitalisation of the Nigerian Exchange Limited (NGX) further by N81 billion.
The All Share Index (ASI) rose by 154.65 absolute points, representing a gain of 0.29 per cent to close at 53,157.83 points. Accordingly, investors gained N81 billion in value as market capitalisation went up to N29.609 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; MTNN, Nigerian Exchange Group, Industrial & Medical Gases Nigeria, United Capital, Lafarge Africa, and Oando.
Analysts at United Capital Plc, said: “We expect the bourse’s broad-based bullish run to continue as investors’ risk-on sentiments continue to prevail amid decent earnings performance and a depressed yield environment in the money market.
“We see room for pockets of bearish sentiments owing to profit-taking activities. We recommend that fund managers cherry-pick stocks with attractive prices, solid valuations, and dividend performance to take advantage of an extension of the current bullish run.”
‘Vetiva Dealings and Brokerage said: “As expected, a positive close was maintained in Monday’s session despite the neutral close in market breadth, as large-cap names improved performance, as seen in the 32bps gain in the NGX30 index. We expect a similar trade pattern going into tomorrow.”
As measured by market breadth, market sentiment was mixed, as an equal number of stocks (16) gained and lost. Sovereign Trust Insurance recorded the highest price gain of 10 per cent to close at 33 kobos.
Linkage Assurance followed with a gain of 8.89 per cent to close at 49 kobos, while International Energy Insurance rose by 8.08 per cent to close at N1.07 kobo.
Industrial & Medical Gases Nigeria went up by 4.55 per cent to close at N8.05, while Courteville Business Solutions appreciated by 4.08 per cent to close at 51 kobos.
On the other hand, McNichols Plc led the losers’ chart by 8.96 per cent to close at 61 kobo, while Prestige Assurance followed with a decline of 8.70 per cent to close at 42 kobos. FTN Cocoa processors lost 6.06 per cent to close at 31 kobos, while SUNU Assurance and Japaul Gold & Ventures shed 5.88 per cent each to close at 32 kobos each.
The total volume traded declined by 28.5 percent to 191.636 million units, valued at N4.799 billion, and exchanged in 4,359 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) topped the activity chart with 50.585 million shares valued at N1.271 billion.
Zenith Bank followed with 18.017 million shares worth N452.440 million, while Chams Holding Company traded 16.628 million shares valued at N4.451 million.
United Bank for Africa (UBA) traded 14.935 million shares valued at N125.390 million, while Transnational Corporation of Nigeria (Transcorp) transacted 14.171 million shares worth N18.790 million.
