Following sustained bargain-hunting in most blue-chip stocks, transactions at the Nigerian Stock Exchange (NSE) continued upbeat, as market capitalisation of listed equities hit N22 trillion mark.
Yesterday, the All-Share Index (ASI) grew by 238.68 absolute points or 0.57 per cent rise to close at 42,169.41 points. Also, the overall market capitalisation gained N125 billion to close at N22.059 trillion.
The gain was driven by price appreciation in large and medium value including Stanbic IBTC Holdings, Julius Berger, Nigerian Breweries, Zenith Bank, and Guaranty Trust Bank. The Chief Operating Officer, InvestData Consulting Limited, Ambrose Omordion, attributed the uptrend to renewed buying pressure ahead of the earnings season and strong volatility that revealed the entrance of funds into the equity space.x
He said these investors were searching for higher yield, as well as in dividend paying and undervalued stocks with strong prospects to grow their earnings for a bumper harvest.
He also added that the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term investments.
Sentiment, as measured by market breadth was positive, as 28 stocks gained, relative to 22 losers. Portland Paints and Products recorded the highest price gain of 10 per cent to close at N3.19 per share, Julius Berger Nigeria followed with 9.95 per cent to close at N22.65, while NPF Microfinance Bank rose 9.71 per cent to close at N1.92 kobo.
Champion Breweries advanced 9.69 per cent to close at N2.83, and Japaul Gold and Ventures appreciated by 9.41 per cent to close at 93 kobo per share. On the other hand, Academy Press led the losers’ chart by 10 per cent to close at 36 kobo, while Sovereign Trust Insurance followed with a 9.68 per cent fall to close at 28 kobo.
Courteville Business Solutions and Guinea Insurance lost 9.09 per cent each to close at 20 kobo, each, while Niger Insurance shed 8.70 per cent to close at 21 kobo per share.
Also, the total volume traded rose by 2.16 per cent to 555.321 million shares worth N5.764 billion, traded in 6,386 deals. Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 76.178 million shares valued at N81.819 million.
Union Bank of Nigeria (UBN) followed with 75.906 million shares worth N432.799 million, and Zenith Bank traded 35.226 million shares valued at N936.777 million. Dangote Sugar Refinery traded 31.676 million shares at N660.268 million, and UAC of Nigeria (UACN) transacted 25.289 million shares worth N203.864 million.