Stocks market extends gains as indices appreciate further by N16b

Transactions on the equities sector of the Nigerian Stock Exchange (NSE) continued in an upbeat yesterday, following price gains recorded by some blue-chip companies, especially McNichols and Dangote Flour Mills, as market capitalisation increased further by N16 billion.

The All Share Index (ASI) gained 43.72 absolute points, representing an increase of 0.14 per cent, to close at 32,173.66 points. Similarly, market capitalisation grew by N16 billion, to close at N11.998 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; NASCON Allied Industries, Dangote Flour Mills, Guaranty Trust Bank, Union Bank of Nigeria and Zenith Bank.

Analysts at Afrinvest Limited said: “We expect a moderation in gains as we believe investors will begin to book profit in subsequent trading session.”

Also, Cordros Capital Limited urged investors to be more cautious in the short term.

“Amidst the still sensitive political landscape, we hold the view that the blend of compelling valuation story, together with positive macro-economic picture, leaves scope for market recovery in the medium-to-long term. However, we guide investors to tread a cautious trading path in the short term.”

However, market breadth was negative, recorded 14 gainers against 17 losers. McNichols recorded the highest price gain of 7.14 per cent, to close at 60 kobo, per share. Dangote Flour  Mills followed with a gain of 5.77 per cent to close at N11, while  Union Bank of Nigeria rose by 4.48 per cent to close at N7, per share.

NASCON appreciated by 4.17 per cent to close at N20, while Sovereign Trust Insurance up by four per cent to close at 26 kobo, per share.
On the other hand, Red Star Express led the losers’ chart by 9.09 per cent, to close at N5, per share.

Japaul Oil & Maritime Services followed with a decline of 8.70 per cent to close at 21 kobo, while Mutual Benefit Assurance lost 7.41 per cent to close at 25 kobo, per share.

NPF Micro Finance Bank shed 6.96 per cent to close at N1.47, while Caverton Offshore Support Group depreciated by 6.12 per cent, to close at N2.30, per share.

Total volume of trades increased by 32.5 per cent to 400.87 million units, valued at N3.46 billion and exchanged in 3,885 deals.

Transactions in the shares of Diamond Bank topped the activity chart with 119.79 million shares valued at N299.33 million. FBN Holdings followed with 44.39 million shares worth N358.98 million.

United Bank for Africa (UBA) traded 40.82 million shares valued at N314.48 million.

Guaranty Trust Bank traded 32.51 million shares valued at N1.22 billion, while Zenith Bank transacted 24.4 million shares worth N604.99 million.