Compared to the
negative outcome witnessed during last week’s opening trading figures,
investors at the Nigerian Stock Exchange (NSE) yesterday recorded more
gains on the value of their equities, as market opened trading on
positive note.
The NSE market
capitalisation of the 194 First-Tier equities closed on Monday at
N8.252 trillion from last Friday’s figures of N8.248 trillion,
reflecting 0.04 percent increase or N4 billion gains. The market had
lost over N13 billion at the close of last Monday’s trading session.
Analysts at GTI
Capital, a stock broking firm, said, “Sustained investors’ enthusiasm
on blue chip stocks especially those that have made their recent
earnings available in the market appeared a major catalyst to the ride
in the market.” They said blue chip stocks such as Dangote Sugar,
Cadbury,
First Bank, United Bank for
Africa, UAC Nigeria, Lafarge WAPCO, as well as Honey Well Flour, have
been recording significant gains recently to boost the market growth.
The number of
gainers at the close of trading session on Monday closed lower at 24
stocks compared with the 29 recorded last Friday, while losers also
closed lower at 23 against the 32 recorded the previous trading day.
Bank PHB and
Guinness Nigeria topped the price gainers’ table with an increase of
five percent each, to close at N1.47 and N215.25 per share,
respectively. Chemical and Allied Products and Oceanic Bank followed on
the gainers’ table with an increase of 4.99 and 4.52 percent, to close
at N23.13 and N2.08 per share.
On the flip side,
Cement Company of Northern Nigeria and Japaul Oil led the price losers’
chart with a loss of 4.98 and 4.93 percent, to close at N12.22 and
N1.35 per share, respectively. Evans Medical and FinBank followed with
a loss of 4.72 and 3.95 percent, to close at N1.21 and 73 kobo per
share.
Active subsectors
The Banking
subsector led the most active subsectors’ chart with 150.458 million
volumes of shares, valued at N1.423 billion. Volume in the subsector
was driven by Zenith Bank, Guaranty Trust Bank, Ecobank Transnational,
and First bank.
Trading activities
in the Insurance subsector followed, with 26.222 million shares valued
at N23.533 million. Deals in shares of Continental Reinsurance, Law
Union and Rock Insurance, and Aiico Insurance boosted volume in this
subsector.
The Conglomerates
subsector was third in the chart with 15.554 million volumes of shares,
valued at over N180.785 million. Volume in the subsector was driven by
Transnational Corporation, PZ Cussons, and UAC Nigeria.
Insurance industry
In the mean time,
Oscar Onyema, the new chief executive officer of the NSE, has urged all
quoted companies to endeavour to come to the market and provide the
public information about their companies.
“This is important
as our market is information driven,” Mr Onyema said yesterday while
speaking during the presentation of “Facts behind the Figures” by the
management of Continental Reinsurance.
He said there is great potential for the insurance industry in
Nigeria. “Given our population of over 140 million people and improving
economic fortune, we are capable of driving the biggest insurance
market in Africa. However, the reality on ground is not comforting.” Mr
Onyema said Nigeria has continued to record sub-optimal patronage in
Africa’s insurance market, despite her huge population. “Everybody must
brace up to the insurance challenge. Government should involve policies
that would make Nigerians embrace taking policies; operators should
engage in best practices that would make the industry become attractive
to investors and potential policy takers. Other stakeholders too should
help contribute their quota to the growth of the industry in the
interest of the general economy,” he added.
