Nigerian equities charged further yesterday to their sixth consecutive positive trading session, chalking up N402.6 billion to push net capital gains for the past six trading sessions to N1.23 trillion.
The sustained rally since trading started in 2020 signaled a major recovery for Nigerian investors, after the equities market lost about N1.71 trillion in 2019. Nigerian equities closed 2019 with negative average full-year return of -14.60 per cent. It had recorded negative average full-year return of -17.81 per cent in 2018.
Average return yesterday stood at 2.92 per cent, equivalent to net capital gain of N402.58 billion. Average year-to-date return rallied to 9.51 per cent, implying net capital gains of N1.23 trillion so far this year.
The listing of BUA Cement meanwhile added N1.2 trillion to total market capitalisation of all quoted equities. With the capital gains and primary listing, total market value of quoted equities at the Nigerian Stock Exchange (NSE) rose from its opening value of N13.787 trillion to close at N15.164 trillion.
The All Share Index (ASI)- the value-based common index that tracks share prices at the NSE, leapt to 29,395.57 points as against its opening index of 28,562.48 points.
With 22 gainers to 21 losers, the market performance was driven by gain recorded by NSE’s most capitalised company, Dangote Cement Plc, which rose by N11 to close at N175 per share. The NSE Industrial Goods Index, where Dangote Cement is listed, rose by 7.89 per cent. On the downside, the NSE Banking Index dropped by 0.39 per cent. The NSE Insurance Index dipped by 0.31 per cent. The NSE Consumer Goods Index slipped by 0.21 per cent while the NSE Oil and Gas Index dipped by 0.07 per cent.
MTN Nigeria Communications followed Dangote Cement with a gain of N6.50 to close at N116. Presco rose by N5.05 to close at N57.05. BUA Cement added N3.45 to close at N38.45. Guaranty Trust Bank chalked up N1.30 to close at N32.55. Lafarge Africa chalked up 55 kobo to close at N15.40 while UAC of Nigeria added 30 kobo to close at N9.35 per share.
On the negative side, Union Dicon Salt led the losers with a loss of N1.20 to close at N10.95. Access Bank dropped by 65 kobo to close at N10.95. Unilever Nigeria dropped by 60 kobo to close at N19. United Bank for Africa declined by 50 kobo to close at N8.35 while Flour Mills of Nigeria dropped by 40 kobo to close at N23 per share.
Total turnover stood at 693.19 million shares valued at N7.44 billion in 6,634 deals. Wapic Insurance was the most active stock with a turnover of 190.10 million shares worth N68.48 million. Transnational Corporation followed with N82.82 million shares valued at N89.81 million while Zenith Bank placed third with 80.78 million shares worth N1.77 billion.
“Following the recent trend in the market, we maintain our bullish outlook on the market this week,” Afrinvest Securities stated.
United Capital Plc has projected that Nigerian equities may deliver a modest average return of some 5.3 per cent in 2020, although the overall market outlook remains susceptible to external shocks and domestic policies. (The Nation)
