Investors regain confidence in stock market, reap N3.28tn

 Investors have regained confidence in the stock market following the N3.28tn gain recorded in the market in the last 11 trading days.

As of Wednesday, the gains recorded from the bullish run totalled N1.92tn.

The stock market recorded its biggest daily gain in seven months on Wednesday as the All Share Index gained 3.54 per cent, a level last seen on May 28, 2019.

However, a further N197bn gain was recorded at the end of trading on Thursday, which pushed the market capitalisation to N13.98tn.

The ASI increased by 2.92 per cent to settle at 29,395.57 basis points.

The stock market also witnessed a boost on Thursday following the listing of BUA Cement Plc on the daily official list of the Nigerian Stock Exchange, which added N1.18tn to the total market capitalisation of the Exchange.

The market capitalisation thus closed at N15.16tn on Thursday.

BUA Cement listed 33.864 billion ordinary shares of 50 kobo each at N35, which surged to N38.45 as of the end of trading on Thursday and N41 on Friday.

At the end of the week, a total turnover of 2.683 billion shares worth N32.646bn in 30,956 deals were recorded by investors on the floor of the Exchange, in contrast to a total of 2.309 billion shares valued at N21.675bn that exchanged hands the previous week in 14,906 deals.

The financial services industry (measured by volume) led the activity chart with 2.035 billion shares valued at N18.592bn traded in 18,876 deals; thus contributing 75.87 per cent and 56.95 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 225.720 million shares worth N504.123m in 1,217 deals.

The third place was occupied by the consumer goods industry, with a turnover of 123.382 million shares worth N3.116bn in 3,403 deals.

Trading in the top three equities namely, United Bank for Africa Plc, Zenith Bank Plc and Wapic Insurance Plc (measured by volume), accounted for 934.661 million shares worth N10.925bn in 7,194 deals, contributing 34.84 per cent and 33.46 per cent to the total equity turnover volume and value respectively.

In the Exchange Traded Products market, a total of 15,390 units valued at N13.095m were traded last week in 32 deals, compared with a total of 4,033 units valued at N4.233m transacted the previous week in 26 deals.

A total of 64,840 units of Federal Government bonds valued at N71.362m were traded last week in 30 deals, compared with a total of 204,300 units valued at N237.207m transacted the previous week in four deals.

Fifty-one equities appreciated in price during the week against 20 losers, compared to the 44 gainers and 24 losers recorded the previous week.

The top five gainers for the week were Dangote Cement Plc, Presco Plc, Livestock Feeds Plc, Okomu Oil Palm Plc and Consolidated Hallmark Insurance Plc, with respective gains of 21.13 per cent, 19.79 per cent, 18 per cent, 16.81 per cent and 16.67 per cent.

The top five losers were UPDC Real Estate Investment Trust, NCR (Nigeria) Plc, Union Dicon Salt Plc, Tripple Gee and Company Plc and Niger Insurance Plc, whose respective share prices declined by 18.60 per cent, 10 per cent, 9.88 per cent, 9.38 per cent and 9.09 per cent.

Source: Punchng, January 13, 2020