STOCK MARKET GAINS N241BN IN THREE DAYS
The nation’s stock market gained N241bn in the first three trading daysof the year. The market, which recorded gains in six consecutive days, maintained its gaining streak into the new year as the market capitalisation of equities climbed above the N13tn mark on Friday. The market opened the week positive as buying interest in Dangote Cement Plc, Guaranty Trust Bank Plc and Zenith Bank Plc pulled the All-Share Index up by 138 basis points to 27,339.68bps.
Consequently, market capitalisation rose by N179.1bn from N13.020tn on Monday to N13.199tn on Tuesday. Activity level was mixed as volume traded fell by 14.5 per cent to 520.434 million units while value traded increased by 42.3 per cent to N5.351bn.
The top traded stocks by volume were Zenith Bank Plc (97.1 million units), Universal Insurance Plc (70 million units) and United Bank for Africa Plc (62.7 million units) while Zenith Bank (N1.9bn), Seplat Petroleum Development Company Plc (N670m) and GTB (N586.4m) emerged the top traded stocks by value.
Performance across sectors was bullish as only the AFR-ICT index depreciated as a result of the share price decline of MTN Nigeria Communications Plc. The banking index led gainers with a 3.9 per cent gain, consequent on buying interest in GTB and Zenith Bank. The industrial goods and Insurance indices edged higher on the back of gains in Dangote Cement, Lafarge Africa Plc, Lasaco Assurance Plc and Wapic Insurance.
Similarly, price appreciation in Dangote Sugar Refinery Plc, Flour Mills Nigeria Plc, Ondo and Oando Plc pushed the consumer goods and oil and gas indices 0.5 per cent and 0.4 per cent higher respectively.
Investor sentiment strengthened as market breadth (advance/decline ratio) strengthened to 2.3x from the 1.5x recorded on last week. A total of 30 gainers, led by First city Monument Group Plc, emerged, compared to 13 losers that were recorded, led by PZ Cussons Nigeria Plc. Analysts at Afrinvest Securities Limited said following the recent trend in the market, it was expected that the market would continue its gaining streak this week.