Stock market continues upward swing as market capitalisation hits N16tn

Bullish trading at Nigerian equities market continued wednesday with Nigerian Stock Exchange (NSE) All-Share Index rising by 1.89 per cent to close higher at 44,885 while market capitalisation ended at N16.08 trillion.

This implies that the market has recorded a growth of 17.4 per cent in 12 trading days of the year.

The market recorded 44 price gainers and 19 price losers, while volume and value of trading advanced by 51.20 per cent and 63.96 per cent respectively.

Commenting on the market performance wednesday, analysts at Meristem Securities Limited said: “The Nigerian bourse continues to record increased investor confidence as the market advanced further by 1.89 per cent. We note that activities today were skewed towards counters below N5.00, as they were 30 out of the 44 gainers. However, we posit that the market’s impressive performance was as a result of the N13.00 gain on Dangote Cement Plc, as the market would have advanced by just 0.67 per cent ex-Dangote Cement.”

Cement Company of Northern Nigeria Plc led price gainers with 10.17 per cent, closely followed by Diamond Bank Plc with 10.1 per cent, while Sterling Bank Plc appreciated by 10 per cent. Transcorp Plc chalked up 9.9 per cent, just as Fidelity Bank Plc and FCMB Group Plc garnered 9.7 per cent apiece.

Conversely, NASCON Allied Industries Plc led the price losers, shedding 4.9 per cent, trailed by Cadbury Nigeria Plc with 4.9 per cent. University Press Plc declined 4.9 per cent, while Newrest ASL Plc closed 4.8 per cent lower.

The market, which recovered from a three-year decline to post a growth of 42.3 per cent last year, has remained on the upbeat since the beginning of the year.

Reviewing the performance of the market in 2017 on Tuesday, Chief Executive Officer of NSE, Mr. Oscar Onyema had attributed the recovery to gradual economic recovery vis-à-vis improvement in global oil prices, domestic output and stronger foreign reserves engendering greater foreign portfolio investor confidence; improvement in the ease of doing business as Nigeria climbed 24 points in World Bank EOD Rankings; and improvement in foreign exchange (FX) stability following favourable CBN policies.

Looking ahead, the NSE boss had said the outlook for the Nigerian capital market is encouraging.

“Indeed, to some extent, political activities and currency movements will have an effect on the market, but we expect that such impacts will be short lived and the performance of the underlying business activities will ultimately determine market performance,” he said.


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