BUA Lifts Equity Cap To N2.22trn in One Week
UMORU ABDULKADIR
BUA Cement Plc lifted transactions on the floor of the Nigerian Stock Exchange (NSE) last week, pushing up the NSE All-Share Index and Market Capitalisation by 9.07 per cent and 16.55 per cent respectively to close the week at 29,415.39 and N15.175 trillion.
BUA Cement was listed on the Exchange Friday, boosting equities value by N1.19 trillion, and brought the capitalization to an all-time high of N15.164 trillion.
By its listing, BUA Cement, which is the outcome of the merger of Cement Company of Northern Nigeria (CCNN) and OBU Cement, has now become the third-largest company on the Nigerian Stock Exchange.
Precisely, the market capitalisation, which opened for New Year’s trading on January 2, 2020 at N12.958 trillion grew by N2.22 trillion to close at N15.174 trillion in the week ended January 10, 2020, while the All-Share Index also appreciated by 2,573.32 basis points or 9.07 per cent to close at 29,415.39, when compared with the opening year index of 26,842.07.
All other indices finished higher with the exception of NSE Oil/Gas index, which depreciated by 0.04 per cent and NSE ASeM Index which closed flat.
A total turnover of 2.683 billion shares worth N32.646 billion in 30,956 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.309 billion shares valued at N21.675 billion that exchanged hands the previous week in 14,906 deals.
The Financial Services industry (measured by volume) led the activity chart with 2.035 billion shares valued at N18.592 billion traded in 18,876 deals; thus contributing 75.87 per cent and 56.95 per cent to the total equity turnover volume and value respectively. The Conglomerates industry followed with 225.720 million shares worth N504.123 million in 1,217 deals. The third place was the Consumer Goods industry, with a turnover of 123.382 million shares worth N3.116 billion in 3,403 deals.
Trading in the top three equities namely, United Bank for Africa Plc, Zenith Bank Plc and Wapic Insurance Plc. (measured by volume) accounted for 934.661 million shares worth N10.925 billion in 7,194 deals, contributing 34.84 per cent and 33.46 per cent to the total equity turnover volume and value respectively.
Fifty-one equities appreciated at price during the week, higher than 44 equities in the previous week. 20 equities depreciated in price, lower than 24 equities in the previous week, while 92 equities remained unchanged, lower than 97 equities recorded in the preceding week.
A total of 15,390 units of Exchanged Traded Products (ETPs) valued at N13.095 million were traded last week in 32 deals, compared with a total of 4,033 units valued at N4.233 million transacted the preceding week in 26 deals.
Similarly, a total of 64,840 units of Federal Government Bonds valued at N71.362 million were traded last week in 30 deals, compared with a total of 204,300 units valued at N237.207 million transacted the previous week in 4 deals.
Commenting on the market positive outlook last week, an analyst at FSDH, Jide Solanke said that the market was buoyed investors optimism that the current economic recovery would persist, to raise dividend yields above the money market rates. He also attributed the bullish outlook to the listing of BUA Cement of 33.86 billion ordinary shares at N35 per share.
Jide noted that profit-taking activities will dominate this new week, which he expects to drag the market to the red territory at a point in the week.
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