Investors’ Interest in Oando, 26 Others Lift Stock Market by N97bn

Kayode Tokede

The stock market section of the Nigerian Exchange Limited (NGX) yesterday rebounded with a gain of N97 billion, driven by price appreciation in Oando Plc and 26 others.

Consequently, the benchmark All Share Index (NGX-ASI) gained 170.46 basis points or 0.18 per cent to close at 97.098.98 basis points. Also, market capitalisation rose by N97 billion to close at N55.130 trillion.

Accordingly, the stock market Month-to-Date and Year-to-Date performance stood at -0.7per cent and +29.9per cent, respectively.

Analysing by sectors, the NGX Banking Index (+one per cent), NGX Insurance Index (+0.8per cent) and NGX Oil & Gas Index (+0.1per cent), while the NGX Consumer Goods Index (-0.3per cent) settled lower. Meanwhile, the NGX Industrial Goods index closed flat.

As measured by market breadth, market sentiment was positive, as 27 stocks gained relative to 22 losers. Red Star Express emerged the highest price gainer of 10 per cent to close at N4.18, while Oando followed with a gain of 9.98 per cent to close at N33.60, per share.

R.T. Briscoe Nigeria and United Capital advanced by 9.90 per cent each to close at N1.11 and N16.10 respectively, while Industrial and Medical Gas Nigeria (IMG) rose by 9.87 per cent to close at N17.25, per share.

On the other side, NEIMETH International Pharmaceuticals led others on the losers’ chart with 7.69 per cent to close at N1.80, per share. Honeywell Flour Mills followed with a decline of 6.10 per cent to close at N3.85, while Sovereign Trust Insurance shed 5.56 per cent to close at 51 kobo, per share.

DEAP Capital Management and Trust lost 4.00 per cent to close at 48 kobo, while Ecobank Transnational Incorporated depreciated by 3.72 per cent to close at N20.70, per share.

The total volume traded increased by 41.69 per cent to 636.501 million units, valued at N12.770 billion, and exchanged in 7,990 deals. Transactions in the shares of Access Holdings led the activity with 112.620 million shares worth N2.110 billion. United Capital followed with account of 74.421 million shares valued at N1.196 billion, while Guaranty Trust Holding Company (GTCO) traded 74.340 million shares valued at N3.337 billion.

Veritas Kapital Assurance traded 55.404 million shares worth N55.085 million, while United Bank for Africa (UBA) traded 40.565 million shares worth N851.718 million.

On market outlook in August, CardinalStone Partners said “the market trend will likely be influenced by a continued rotation into attractive fixed-income securities, driven by elevated yields after the Central Bank of Nigeria (CBN) announced a further 50 basis point increase in the MPR to 26.75 per cent and upcoming earnings results.

“Elsewhere, the ongoing recapitalisation efforts are also expected to influence market dynamics as various banks accelerate their capital raise programs