Uptick in Dangote Cement halts 6-day bearish run in Nigeria’s equities market
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
Gains in Dangote Cement, the most capitalised stock on the Nigerian bourse Monday helped to put a halt to a bearish run in the market that had lasted for six days in a stretch. It lifted market capitalisation by 0.34 percent.
The company recorded a 2.22 percent increase in its share price during trading to close at N230 per share, but market breadth ended flat with most sectoral indices closing in the negative territory.
The market’s All Share Index (ASI) settled at 37,992.12 basis points as result, while market capitalisation appreciated by 0.34 percent or N47 billion to close at N13.763 trillion.
Negative year to date returns consequently improved to -0.66 percent. The sectoral indicators were led by the NSE Oil and gas, which recorded the biggest loss for the day (-2.58%), the NSE consumer goods was next with a decline of 0.21 percent, the NSE Industrial dropped 0.15 percent, while banking index fell 0.05 percent The insurance index closed flat.
Market breadth closed flat as 21 stocks posted gains while 21 posted declines.
Activity chart showed an upturn as a total of 207.41 million shares, which rose 24.0 percent from previous sessions, were traded in 3,822 deals.
The total value of traded shares also increased 139.7 percent from previous session, amounting to N3.42 billion.
Lasaco Assurance, with a gain of 5.88 percent, led the gainers table while Seplat with a decline of 4.99 percent led the days laggards.
Based on an analysis of the day’s trade by Morgan Capital investment analysts, the positive close on the NSEASI is due to bargain hunting activities on some stocks, following the previous sessions of losses.
“We note the 2.22 percent gain recorded on the market’s heavyweight, Dangote Cement” they said.
An analysis of the top three traded stocks showed United Bank for Africa dominated trading activities, accounting for 43.71 million shares valued at N459.24 million.
Honeywell Flour came second with an account of 16.89 million shares valued at N34.23 million, while Zenith International Bank traded 16.19 million shares worth N418.66 million.