Stock market extends gain with 0.11 index rise
Following sustained bargain–hunting in the shares of most blue–chip
stocks, the Nigerian equity market extended a bullish run to three
consecutive sessions, yesterday, as the All–Share Index (ASI) increased
further by 0.11 per cent.
At the close of transactions Wednesday, the ASI expanded by 45.10
absolute points, or 0.11 per cent increase to close at 40,341.05 points.
Similarly, the overall market capitalisation gained N24 billion to
close at N21.094 trillion.
The market gain was piloted by price appreciation in medium and large
value stocks, including; Mobil Nigeria, Flour Mills of Nigeria, BOC
Gases, Seplat Petroleum Development Company, and Ardova Plc.
Analysts at Afrinvest Limited, said: “We believe the positive sentiment would be sustained till the close of the week.”
Vetiva
Dealing & Brokerage, also noted that “With most fundamental
indicators (like improving Crude Oil prices, low yields in the fixed
income market, as well as a better comparative returns in the equity
market) still in favour of the Nigerian equity market, we expect the
bulls to continue to dominate most of the sessions in the near term.
However, the possibility of profit–taking on recent gains cannot be
overruled.”
Sentiment, as measured by market breadth, was positive, as 32 stocks
gained, relative to 16 losers. Academy Press, Sovereign Trust Insurance
and Veritas Kapital Assurance recorded the highest price gain of 10 per
cent each, to close at 33 kobo, 22 kobo and 22 kobo, respectively.
BOC Gases followed with 9.92 per cent gain to close at N12.52, while
Champion Breweries rose 9.80 per cent to close at N1.12 kobo.
On the other hand, Chellarams Plc led the losers’ chart by 9.96 per cent
to close at N2.26 kobo. Livestock Feeds followed with a 9.74 per cent
fall to close at N1.76 kobo, while Consolidated Hallmark Insurance shed
8.82 per cent to close at 31 kobo.
FTN Cocoa Processors slipped 5.88 per cent to close at 64 kobo, while Cutix lost five per cent to close at N2.09, per share.
However, the total volume traded fell 59.9 per cent to 468.146 million
units, valued at N6.963 billion, exchanged in 5,697 deals.
Transactions in the shares of Zenith Bank topped the activity chart with
45.773 million shares valued at N1.186 billion. Lasaco Assurance
followed with 40.725 million shares worth N17.024 million, while United
Bank for Africa (UBA) traded 31.816 million shares at N283.105 million.
Japaul Gold and Ventures traded 20.975 million shares valued at N26.638
million, and Sovereign Trust Insurance transacted 19.063 million shares
worth N4.194 million.
Source:Guardian, January 15, 2021