Market Records First Gain after 7 Days of Losses as All-Share Index (ASI) Rose By 0.52 Per Cent to Close at 27,728.63

The Nigerian equities market recorded its first appreciation in eight trading sessions on Monday after depreciating to a two-year low last week. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 0.52 per cent to close at 27,728.63 after dipping by 8.0 per cent last week.

The market was under unprecedented pressure last week following negative reactions to the postponement of the general elections. The postponement extended the relief expected in the financial markets after the elections. However, the a shift in the general elections to March increased the political risk and affected demand for equities. As a result, the market recorded a decline of 8.0 per cent in five days and a dip of over 20 per cent since the beginning of the year.

However, some relief came yesterday as bargain hunters moved in to take advantage of equities that have been heavily discounted. Consequently, the ASI grew from 27,585.26 to 27,728.63. Similarly, market capitalisation added N48 billion, rising from N9.204 trillion to N9.252 trillion.

But the gain was influenced by price appreciation in bellwether stocks such as Dangote Cement, Zenith Bank Plc and Guaranty Trust Bank Plc. However, Cement Company of Northern Nigeria Plc and National Salt Company of Nigeria Plc led the 20 price gainers with five per cent apiece. Ikeja Hotels Plc trailed with 4.97 per cent, while Skye Bank Plc and Seplat Petroleum Development Company Plc appreciated by 4.95 and 4.94 per cent in that order.

Nigerian Aviation Handling Company Plc gained 4.8 per cent just as Forte Oil Plc, Zenith Bank Plc appreciated by 3.7 per cent and 3.4 per cent respectively. Transcorp Plc and GTBank Plc went up by 3.1 per cent and 2.35 per cent in that order.

Conversely, UACN Property Development Company Plc led the price losers with 9.63 per cent. Champion Breweries Plc trailed with a decline of 9.6 per cent, just as Honeywell Flour Mills Plc and Beta Glass Plc shed five per cent apiece. Meanwhile, investors traded 316.509 million shares worth N2.825 billion in 3,776 deals.

Source: Thisdaylive