Blue Chip Stocks Drive Investors’ N181.05bn Gain
UMORU ABDULKADIR
Activities on the floor of the Nigerian Stock Exchange (NSE) sustained its bullish run on Monday to close in the green territory, as the value of listed equities rose to N13.198 trillion, upon N181.05 billion gained by investors at the end of trading today.
Today’s upturn in the market was due to heavy gains in large and medium cap stocks of Dangote Cement, Flour Mills Nigeria, National Salt Company of Nigeria, Guaranty Trust Bank and Dangote Sugar, among others.
Specifically, the All Share Index (ASI) which opened at 26,968.79 points appreciated by 370.89 basis points or 1.36 per cent to close higher at 27,339.68 points, while the market capitalization closed at N13.198 trillion as against N13.019 trillion recorded on Friday.
Consequently, the market breadth closed positive with Dangote Cement leading 30 gainers against 13 losers topped by Seplat Petroleum Development while the Month-to-Date (MtD) positive return stands at 1.85 per cent.
Looking at the price movement chart, it shows that Dangote Cement Plc recorded the highest gain after its share price moved from N142 to N146, gaining 400 kobo or 2.82 per cent, followed by Flour Mills Plc which moved from N19.75 to N21, advancing by 125 kobo or 6.33per cent. National Salt Company of Nigeria which opened trading at N12.95 inched up 100 kobo or 7.72 per cent to close at N13.95 per share.
While Guaranty Trust Bank’s share price moved from N30.1 to close at 31 per share, appreciating by 90 kobo or 2.99 per cent per unit of share, Dangote Sugar nicked 85 kobo or 5.99 per cent to close at N15.05 per share.
On the flip side, Seplat recorded the biggest loss on the day, moving from N592.1 to N589.5, thereby losing 260 or 0.44 per cent followed by MTN Nigeria which fell from N109 to N108, declining by 100 kobo or 0.92 per cent. Unilever shed 70 kobo or 3.38 per cent when its unit share price dropped from N207 to N20.
While PZ Cussons’ share price dipped from N5.65 to N5.1, losing 55 kobo or 9.73 per cent, Union Bank of Nigeria depreciated by 30 kobo to close Monday’s trading at N5.7 per share, among others.
A look at the activity chart shows that Zenith Bank Plc sold N1.91 worth of stocks, accounting for 97.1 million turnovers to emerge the highest traded stocks on the day, followed by Universal Insurance which exchanged 70 million shares estimated at N14 million. United Bank of Africa recorded 62.6 million shares sales valued at N497.6 million.
First City Monument Bank traded 54.8 million shares worth N109.9 million while FBN Holdings Plc accounted for 26.4 million shares valued at N182.7 million to boost market turnover and equity value.
In total, Equity Investors on Monday, January 6, 2020, transacted 520.4 million shares worth N5.3 billion in 5,784 deals.
A Research Analyst at Ecobank, Kunle Ezun said, “Despite the current bullish run, we expect a mixed performance on profit-taking and position-taking as investors take advantage of low prices, as investors expect the release of Companies’ Full-year Financial Statements for the year ended December 31, 2019.”
There are, also, the changing sentiments in the hope of improved liquidity and positive economic indices, as the month progresses, he said.
Meanwhile, the value of listed stocks which opened year 2020 on Thursday, January 2, 2020 following the public holidays declared by the Federal Government of Nigeria for the celebration at N12.971 trillion has now grown to N13.198 trillion as at today, not leaving out the NSE All-Share Index (ASI) which opened the year at 26,867.79 points and has risen to 27,339.68 points, as investors have gained N227 billion since start on the New Year.
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