Cement, banking and consumer goods stockslead NSE bulls charge
by INNOCENT UNAH
August 21, 2017 | 1:27 am| | | Start Conversation
The Nigerian Stock Exchange (NSE) transactions sustained positive trend on the on Friday to see a return of the bulls as market capitalisation grew by N208 billion. Gains by cement, banking and consumer goods stocks led the charge.
After five consecutive weeks of bullish streak, Nigerian equities booked a negative return last week with declines across sector indices. The market started the week on a negative note, mirroring the previous week that ended a 7-day bullish trajectory.
As investors took profit on previous gains in the market, the market witnessed a cumulative loss of 5.58 per cent, which was only reversed on Thursday, aided by gains in Dangote Cement.
News of a regulatory approval of the sale of N200 billion worth of shares in the company by Dangote Industries Limited had spurred the stock gains which extended to Friday with a cumulative gain of 2.26 per cent as bargain hunters swooped on value stocks in the Industrial, Banking and Insurance indices.
Overall, the ASI lost 3.35% week-over-week to 36,920.56 points, dropping month-to-date and year-to-date returns to 3.00 per cent and 37.38 per cent.
The market capitalisation opened trading at N12.52 trillion, but rose 1.66 per cent to N12.73 trillion on Friday as the All Share Index (ASI) gained 1.66 per cent to close at 36,920.56 points. The ASI stood at 36,316.58 points on Thursday.
Dangote Cement grew by N5.20 to close at N225 per share, and lead the gainers’ table for the day.Dangote was followed closelyby Guaranty Trust Bank, which gained N2.40 to close at N39.50 per share. Stanbic IBTC followed with a gain of N1.85 to close at N38.85 per share.
Zenith International Bank added N1.52 to close at N24.53 per share; PZ Industries increased by N1.28 to close at N26.93 per share.
Analystssaid that the movement in share prices was caused by investors that are taking positions ahead of the release of half year results by Access Bank and United Bank for Africa (UBA) 2017.
According to the analysts, the investors’ betting on the result of the two banking giants sustained the volatility witnessed in the market in the last couple of days.
Okomu Oil Palm recorded the highest loss at the day’s trading session, dropping 4.99 per cent of its share price to close at N69.09 per share.
Nigerian Breweries was the second highest loser as the stock dropped 1.62 per cent to close at N181.07; Cadbury shed 63k to close at N12.07 per share.
UACN declined by 60k to close at N16 per share, and CCNN lost 45k to close at N9.22 per share.
Also, the volume of shares traded closed higher as investors traded a total of 236.62 million shares valued at N4.81 billion in 3,803 deals.
This was in contrast with a turnover of 225.14 million shares worth N5.48 billion traded in 5,110 deals on Thursday.
Zenith International Bank was most active, trading 61.85 million shares valued at N1.47 billion.
UBA followed with an account of 40.41 million shares worth N380.68 million and GT Bank traded 32.51 million shares valued at N1.26 billion.
Fidelity Bank sold 12.38 million shares worth N16.04 million, while FBN Holdings exchanged 11.74 million shares valued N70.10 million.
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