Nigerian Stock Exchange index extends gains as 36 stocks rise

The Nigeria Stock Exchange All-Share Index rose for a third straight day on Tuesday as equities closed higher.

Specifically, the NSE ASI rose by 1.01 per cent or 306.67 basis points to close at 30,358.87 basis points. Similarly, the market capitalisation of the listed equities gained 1.01 per cent, or N105bn, to close at N10.439tn.

The gains come amid a global rally by equities following gains by Chinese and US stocks.

Thirty-six stocks recorded price appreciation on Tuesday, while 17 others suffered price depreciation.

United Capital Plc was the day’s top gainer. It rose by 9.72 per cent or 14 kobo to close at N1.58 per share.

Zenith Bank Plc gained 8.84 per cent or N1.45 to close at N17.85 per share, while ABC Transport Plc and Vono Products rose by 7.27 per cent and 6.60 per cent to close at 59 kobo and N1.13 per share.

Also among the gainers were Ikeja Hotel Plc, which was up by 5.28 per cent or 19 kobo to close at N3.79 per share, and Okomu Oil Plc with a five per cent or N1.23 price appreciation to close at N25.83 per share.

On the other hand, Conoil was the worst performing stock for the day. It shed 9.72 per cent or N2.92 to close at N27.13 per share.

Transcorp Hotels Plc followed closely with a 9.67 per cent or 76 kobo decline to close at N7.10 per share.

Cavterton Offshore Support Group Plc edged lower by 4.94 per cent or 16 kobo to close at N3.08 per share, while Diamond Bank Plc and Custodian and Allied Plc fell by 4.55 per cent and 4.53 per cent to close at N3.57 and N4 per share, respectively.

A total of 226.648 million shares worth N1.999bn were traded in 4,531 deals on Tuesday.

United Bank for Africa Plc was the most traded stock with N52.1 million shares worth N221.1m exchanged by investors. Access Bank had 28.6 million shares valued at N145.1m traded, while 26.5 million shares of United Capital worth N40.7m were traded. Zenith Bank and First Bank accounted for 20.07 million shares and 15.650 million shares worth N352.9m and N108.7m, respectively.

According to analysts, recent gains in the equities market can be attributed to growing confidence in the global market, low valuation of stocks and signs that President Mohammadu Buhari is set to fully constitute his administration and give a clearer picture of the economic policies his government will pursue.

Analysts at Meristem Securities Limited had expressed reservations about whether the bullish trend, which saw the NSE ASI and market capitalisation rise by 2.42 per cent last week, would be sustained this week.

In their investment guide for the week, they said, “While we expect investors to react to news flows to the market, we are not optimistic that the bullish trend will be sustained in the coming week, as we anticipate that profit-taking activities will dictate the market’s direction.”