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Nigeria: Stock appreciates in value

Operatives at the Nigeria Stock Exchange (NSE), on Monday, got more confidence on the current market recovery after a total of 53 stocks appreciated in price and only 12 stocks depreciated, in a trading not witnessed in the last four months.

The positive trend in the NSE market capitalisation since last Tuesday continued at the close of yesterday’s trading with an increase of 3.03 percent.

Equity research team at Proshare Nigeria Limited, an investment advisory firm, said the bulk appreciation “suggests a positive market breath”, since the equity market itself, on Monday, marked four days “uninterrupted positive trend.”

They said investors’ patronages in some sectors, particularly in banking, building materials, conglomerates and food/beverages, contributed to the “impressive bargain activities” recorded yesterday.

The market capitalisation closed yesterday at N5.819 trillion, from last Thursday’s figures of N5.648 trillion, reflecting a N171 billion gain. The All-Share Index also gained 3.03 percent or 697.22 units on Monday, up from 23,050.59 basis points to close at 23,747.81.

Two breweries, Nigerian Breweries and Guinness, topped the price gainers’ chart on Monday, with an increase of N3.72 and N3.00 on their opening prices of N74.58 and N170.00 per share. UAC Nigeria and Unilever followed in the chart with an increase of N2.01 and N1.09, to close at N42.33 and N25.59 per share.

On the flip side, Glaxo Smithkline Consumer and International Breweries topped the losers’ chart with a decrease of N1.24 and 35 kobo, to close at N23.67 and N6.75 per share respectively. Presco and Vitafoam followed on the list with a decrease of 31 kobo and 21 kobo respectively, on their opening prices of N6.32 and N6.14 per share.

All the NSE sectoral indexes reflected the positive outlook as the NSE-30 gained by 3.21 percent. The NSE Banking recorded the highest gain by 4.40 percent; the Food/Beverages moved up by 2.14 percent; the Insurance gained by 2.04 percent, while the NSE Oil/Gas recorded the lowest gain by 0.31 percent.

The banking subsector yesterday led on the most active subsector table with 179.487 million shares, valued at N1.645 billion. The volume in the subsector was driven by shares of Guaranty Trust Bank, First Bank, and First City Monument Bank.

The conglomerates subsector followed in the activity chart with 45.941 million shares worth N113.711 million. The volume in this subsector was largely boosted by shares of Transnational Corporation, PZ Cussons, and Unilever Nigeria.

The building materials subsector was third in the chart, with investors exchanging 22.296 million shares worth N827.989 million. Lafarge Wapco, Ashaka Cement, and Benue Cement Company drove the subsector’ volume.

The Exchange on Monday marked down the share price of Conoil for a dividend of N1.50. The payment date is 2nd November, 2010.