Investors’ Interest in Tier-1 Banks Lift Stock Market by 0.13%

Kayode Tokede

Opening the week, the stock market segment of the Nigerian Exchange Limited (NGX) yesterday gained 0.13 per cent as investors renewed interest in listed Tier-1 banks. 

As Zenith Bank added 6.76 per cent, Guaranty Trust Holding Company Plc (GTCO) grew by 9.55 per cent and United Bank for Africa Plc gained 0.66 per cent, the NGX All Share Index (ASI) rose by 125.30 basis points or 0.13 per cent to close at 99,665.05 basis points.

Accordingly, market capitalisation gained by N71 billion to close at N56.367 trillion.

As measured by market breadth, market sentiment was negative, as 26 stocks gained relative to 19 losers. Japaul Gold & Ventures recorded the highest price gain of 9.58 per cent to close at N1.83, per share. GTCO followed with a gain of 9.55 per cent to close at N36.70, while FTN Cocoa Processors rose by 8.76 per cent to close at N1.49, per share.

Universal Insurance went up by 8.57 per cent to close at 38 kobo, while RT Briscoe Nigeria appreciated by 8.47 per cent to close at 64 kobo, per share.

On the other hand, The Initiates Plc (TIP) led the losers’ chart by 10 per cent, to close at N1.80, per share. Prestige Assurance followed with a decline of 9.84 per cent to close at 55 kobo, while Omatek Ventures declined by 9.52 per cent to close at 74 kobo, per share.

Vitafoam Nigeria depreciated by 9.26 per cent to close at N17.15 and Learn Africa declined by 9.09 per cent to close at N3.00, per share.

The total volume traded increased by 18.91 per cent to 306.620 million units, valued at N5.301 billion, and exchanged in 8,298 deals. Transactions in the shares of GTCO topped the activity chart with 50.158 million shares valued at N1.774 billion. Access Holdings followed with 48.067 million shares worth N815.925 million, while United Bank for Africa (UBA) traded 41.747 million shares valued at N956.455 million.

Universal Insurance traded 39.714 million shares valued at N14.392 million, while Zenith Bank sold 15.166 million shares worth N560.323 million.

This week, United Capital Plc said “we expect activities in the fixed income market to continue to stand as a strong demotivator toward equities investments. We expect the status quo to remain same, with bearish sentiments outweighing. From an alternate viewpoint, we expect bargain hunting activities to lurk in the shadows, owing to the tremendous opportunities presented by the recent bearish trend (particularly around the banks).”