NGX Equity Market Rebounds by N467bn

The Nigerian Exchange Ltd. (NGX) on Thursday posted a first week gain with the market capitalisation rebounding by N467 billion, amid renewed interests by investors.

Specifically, the market capitalisation which opened at N55,058 trillion, gained N467 billion or 0.84 per cent, to close at N55,525 trillion.

The All-Share Index also advanced by 813.3 points or 0.84 per cent  to close at 98,156.71, in contrast to 97,343.42 recorded on Wednesday.

Investors improved buy interest in the stocks of Airtel, Nigerian Breweries, Fidelity Bank and some insurance companies drove the market to a positive terrain.  Consequently, the Year-To-Date (YTD) return rose to 31.27 per cent.

Mr Sam Ndata, a Doyen of the Capital Market, said that the flip-flop trading sessions were not unusual for a perfect market. Ndata said that a regular market would continue to fluctuate up and down to balance trading.

He explained that many investors were improving their buy interest in the stocks of insurance companies and some other blue-chips, while taking profits in the Tier-one banking stocks, due to the ongoing recapitalisation process.

According to him, investors are monitoring the performances of bank stocks to know those that would survive the recapitalisation phase before investing. The beauty of the market is that it will continue to go up and down, as that is what makes it a perfect market.

“Investors would continue to sway from one sector to another as they monitor the policies that may affect them either positively or negatively, “he said. However, the market breadth closed negative with 24 declined equities outnumbering 15 advanced ones.

On the losers’ table, Eterna led by 9.89 per cent to close at N12.30, FCMB trailed by 8.28 per cent to close at N6.65 per share. Omatek dropped 6.94 per cent to close at 67k, Unity Bank lost 5.88 per cent to close at N1.60 and FBN Holdings 5.36 per cent to close at N22.95 per share.

Conversely, Guinea Insurance and Royal Exchange Assurance led the gainers’ table by 10 per cent each to close at 33k and 55k per share respectively.

Airtel Africa gained 8.97 per cent to close at N2,150 and International Energy Insurance rose by 7.84 per cent to close at N1.65 and Prestige Assurance added 5.88 per cent to close at 54k per share. Analysis of the market activity showed that trade turnover settled 24.95 per cent higher than the previous session.

A total of 409.77 million shares valued at N8.93 billion were exchanged in 7,296 deals, compared to 355.55 million shares valued at N7.14 billion traded in 7,333 deals recorded on Wednesday. Custodian led the activity chart in volume with115.53 million shares valued at N1.38 billion, Nigeria Breweries followed 83.75 million shares worth N1.93 billion to lead the value chart.

United Bank of Africa(UBA)traded 26.06 million shares valued at N560.54 million, Access Corporation traded 24.18 million shares worth N409.80 million.

Guaranty Trust Holding Company(GTCO) transacted 22.93 million shares valued at N946.86 million. FAAC Disburses N1.2Trn May Allocation to FG, States, LGs
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