Nigeria stock market rises by N297bn, amid Airtel, Seplat gain

Employees work on the trading floor at the Nigerian Stock Exchange (NSE) in Lagos, Nigeria, on Tuesday, April 2, 2019. The International Monetary Fund said Nigerias economy was growing too slowly to reduce poverty or joblessness and urged the government to boost revenue and scrap its system of multiple exchange rates. Photographer: Ruth McDowell/Bloomberg via Getty Images

By Chinyere Joel-Nwokeoma

Lagos, Oct. 5, 2020 The nation’s bourse opened trading on Monday with a growth of N297 billion following gains by some highly capitalised stocks.

Specifically, the market capitalisation inched higher by N297 billion or 2.11 per cent to close at N14.402 trillion from N14.105 trillion recorded on Friday.

Similarly, the All-Share Index increased by 568.72 points or 2.11 per cent to close at 27,554.49 compared with 26,985.77 posted on Friday.

The upturn was impacted by gains recorded in large and medium capitalised stocks, amongst which are; Airtel Africa, Seplat, MTN Nigeria Communications (MTNN), Presco and Guinness.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the sustained bullish trend to low returns offered by money market investments.

Omordion said that investors were taking advantage of cheap prices of stocks, adding that most stocks were trading below their intrinsic value.

The market breadth closed positive with 36 gainers and 10 laggards.

GlaxoSmithKline and Red Star Express led the gainers’ chart in percentage terms, gaining 10 per cent each, to close at N5.50 and N3.30 per share, respectively.

NPF Microfinance Bank followed with 9.60 per cent to close at N1.37, while Africa Prudential improved by 9.47 per cent to close at N5.20 per share.

Neimeth and Wapic Insurance appreciated by 8.33 per cent each to close at N1.95 and 39k per share, respectively.

Conversely, Tripple GEE led the losers’ chart in percentage terms, losing 10 per cent to close at 36k per share.

Oando dipped 8.73 per cent to close at N2.09, while UACN Property Development shed 6.52 per cent to close at 86k per share.

Chams dropped 4.76 per cent to close at 20k, while Union Bank of Nigeria depreciated by two per cent to close at N4.90 per share.

Also, the total volume of shares traded increased by 31.35 per cent as investors bought and sold 603.95 million shares worth N7.43 billion in 5,984 deals.

This was in contrast with a turnover of 384.54 million shares valued at N3.44 billion exchanged in 3,949 deals.

Transactions in the shares of Zenith Bank topped the activity chart with 204.69 million shares worth N3.83 billion.

Sterling Bank trailed with 55.23 million shares valued at N71.28 million, while United Bank for Africa traded 51.3 million shares worth N328.85 million.

Guaranty Trust Bank sold 36.31 million shares valued at N1.07 billion, while Transcorp transacted 35.11 million shares worth N20.97 million.