NSE: Indices rebound by one per cent, amid interest in high capitalised stocks

After two days loss, trading activities rebounded on the Nigerian Stock Exchange (NSE) on Thursday following investors’ interest in some highly capitalised equities.

Specifically, the market capitalisation of listed equities grew by N150 billion or one per cent to close at N15.142 trillion against N14.992 trillion posted on Wednesday.

In the same vein, the All-Share Index (ASI) inched 289.63 points, representing a growth of one per cent to close at 29,352.13 against 29,062.50 achieved on Wednesday.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, MTN Nigeria, Forte Oil, Lafarge Africa and Unilever Nigeria.

Speaking on market outlook, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that investors were taking advantage of price correction to increase their stake in the market.

Omordion said they were increasing their stake ahead of the release of the nation’s December inflation data, first Monetary Policy Committee meeting of the year as well as release of 2019 earnings reports.

He said that prevailing low-interest rate regime in the money market contributed to the uptrend experienced in the stock market.

Consequently, market breadth closed positive with 23 stocks gainers and 16 losers.

An analysis of the price movement table shows that Livestock Feeds led the gainers’ chart in percentage terms, growing by 10 per cent, to close at 55k per share.

Forte Oil trailed with a gain 8.42 per cent to close at N20.60, while Lafarge Africa rose by 6.33 per cent to close at N15.95 per share.

Jaiz Bank inched 6.25 per cent to close at 68k, while FBN Holdings appreciated by 5.71 per cent to close at N7.40 per share.

On the other hand, BOC Gases led the losers’ chart in percentage terms, dropping by 10 per cent to close at N4.95 per share.

Caverton followed with a decline of 9.97 per cent to close at N2.62, while Cornerstone Insurance lost 6.90 to close at 54k per share.

UACN dipped 6.54 per cent to close at N10, while BUA Cement shed 5.26 per cent to close at N36 per share.

Also, the total volume of shares transacted rose by 7.51 per cent with an exchange of 387.16 million shares worth N5.02 billion traded in 4,654 deals.

This was in contrast with a turnover of 360.08 million shares valued N2.83 billion sold in 4,345 deals on Wednesday.

Access Bank topped the activity chart with an exchange of 74.64 million shares worth N770.93 million.

Zenith Bank followed with a total of 71.83 million shares worth N1.56 billion, while Lafarge Africa traded 40.73 million shares valued N629.9 million.

United Bank for Africa accounted for 37.25 million shares worth N327.99 million, while Morison Industries transacted 35 million shares valued at N15.76 million.