Dangote cement, Banking shares lift Nigerian Equities to Stay at 2-year high

Traders work at the Nigerian Stock Exchange in Lagos, February 13, 2015. REUTERS/Joe Penney

LAGOS, June 19 (Naija247news) – Nigerian stocks rose to a fresh two-year high on Monday, lifted by gains in cement and banking shares extending a rally which started last month, traders said.

The main index climbed 0.96 percent to cross 34,000 points, a level it last reached in May 2015.

Index provider MSCI this month increased Nigeria’s weight on its frontier index to 7.9 percent from 6.5 percent, meaning that funds tracking it would buy shares to replicate the new weight, analysts say.

In April the central bank allowed investors to trade the naira at market rates, lifting a currency control for them, to help boost confidence as Nigeria grapples with a currency crisis and a recession brought on by low oil prices.

Share in Dangote Cement, which accounts for a third of the market capitalisation, climbed 2.44 percent to lift the index. Skyebank rose 8 percent, followed by pan-African banking group, ETI which increased by 7.12 percent.

The Market Capitalisation similarly closed at N11.804 trillion after adding 112 billion in Monday compared to last sessions growth if N4 billion when market capitalisation closed at N11.692 trillion.

Cement Company of Northern Nigeria led the day’s gainers with an increase of 10.17 percent to close at N9.75 per share.

May & Baker was next with an increase of 9.87 percent to close at N5.01 while International Breweries came third on the gainers list with an appreciation of 8.83 percent to close at N28.35 per share.

AIICO followed with a gain of 8.47 percent to close at 64 kobo and Skye Bank gained 8 percent to close at 81 kobo per share.

Topping the losers chart was CAP Plc with a decline of 9.52 percent to close at N34.20. Mobil trailed with a loss of 5 percent to close at N250.90 while Forte Oil declined by 4.98 percent to close at N52.81 per share.

FBN Holdings was down by 4.93 percent to close at N6.55, while Nigerian Aviation Handling Co. depreciated by 4.92 percent to close at N3.09 per share.

At the end of the day’s transactions volume of shares traded in 5771 deals further dropped to 482.5 million shares from 493.3 million traded on Friday.

Value traded also reduced to N5.682 billion from N6.237 billion traded on Friday.

Wema Bank topped activity chart with 62.9 million shares traded worth N36.2 million, Guaranty Trust Bank was next with 50.4 million shares valued at N1.8 billion and Access Bank exchanged 34.5 million shares worth N344.9 million.

Transcorp transacted 32.3 million shares at N58.7 million and Fidelity Bank emerged the fifth most traded stock with 31.7 million shares valued at N41.6 million.

Nigeria’s top 10 banking index has gained 51.2 percent so far.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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