Nigerian bourse up N245bn Thursday as fixed income instrument yields decline

The Nigerian Stock Exchange (NSE) on Thursday posted the biggest gain in over six months with the market capitalisation inched N245 billion to cross N13 trillion, closing at N13.067 trillion against N12.822 trillion on Wednesday.

Zenith International Bank for the second consecutive day emerged the toast of investors with 167.92 million shares worth N3.19 billion with the Access Bank came second with 99.3 million shares valued at N1.06 billion, while United Bank for Africa (UBA) sold 67.78 million shares worth N500.25 million.

Nigerian Breweries accounted for 36.29 million shares valued at N1.72 billion, while Sterling Bank transacted 31.43 million shares worth N68.45 million.

Reacting to huge volume shares traded by the like of Zenith International Bank and Access Bank, the Managing Director and Chief Executive Officer of Sofunix Media and Investment Limited, Mr Sola Oni said: “there is nothing unusual. I think Access is the largest bank in Nigeria today by asset base and the third largest by net asset.

“If Treasury Bill can come down to 7.5 per cent, investors should be willing to take a risk in equity. Portfolio shift is in the horizon and Access Bank is a value stock”.

The All-Share Index increased by 504 points or 1.91 per cent to 26,843.11 compared with 26,339.11 achieved on Wednesday.

This development also saw the major sectors of the market closing positive; with the banking sector seeing the biggest move.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Guinness Nigeria, Guaranty Trust Bank, Zenith Bank, Dangote Sugar Refinery and Access Bank.

Also, analysts at Afrinvest Limited stated : “Following the marked improvement in sentiment in the equities market, we expect a mixed market performance in the short term as bulls continue to battle bears for dominance.”

An analysis of the price movement table shows that Ekocorp led the gainers’ table with 9.79 per cent to close at N3.70 per share and Caverton Offshore followed with a gain 9.76 per cent to close at N2.70, while Guinness appreciated by 9.70 per cent to close at N26 per share.

United Capital rose by 9.66 per cent to close at N2.27, while FBN Holdings appreciated by 9.65 per cent to close at N6.25 per share.

Conversely, Ikeja Hotel led the losers’ chart in percentage terms with a loss of 9.38 per cent to close at 87k per share.

Champion Breweries followed with a decline of 9.09 per cent to close at 90k, while MTN Nigeria lost 0.12 per cent to close at N121.90 per share.