The
market capitalisation of equities at the Nigerian Stock Exchange, on
Monday, bounced back by 0.26 per cent, making it the third consecutive
day of growth.
The NSE market
capitalisation of the 201 First-Tier equities closed yesterday at
N8.536 trillion after opening the day at N8.514 trillion, reflecting
over N22 billion gains. About N77 billion has been recovered in the
last three trading days.
The number of
gainers at the close of trading session on Monday closed higher at 38
stocks compared to the 28 recorded last Friday, while losers closed
lower at 25 stocks, as against the 33 recorded the previous trading day.
Nestle Nigeria and
Nigerian Bottling Company topped the price gainers’ table with an
increase of five per cent and 4.99 per cent, to close at N453.12 and
N41.89 per share, respectively. On the flip side, Neimeth International
and NCR Nigeria led the price losers’ chart with a loss of 4.92 and
4.90 per cent, to close at N1.74 and N6.60 per share.
At the close of
trading on Monday, the Banking subsector led the most active
subsectors’ chart with 194.591 million volumes of shares, valued at
over N1.779 billion. Volume in the subsector was driven by First Bank,
Zenith Bank, and Sterling Bank.
Trading activities
in the Insurance subsector followed with 8.312 million shares valued at
N7.194 million. Deals in shares of Aiico Insurance, Continental
Reinsuarnce, and Cornerstone Insurance boosted volume in this
subsector. The Food/beverages subsector was third in the chart.
Investors in the
sector exchanged 7.438 million volumes of shares, valued at over
N220.066 million. HoneyWell Flour Mills, Dangote Sugar Refinery, and
Dangote Flour Mills boosted volume in the subsector.
Liquid market
Meanwhile, a finance expert said the nation’s capital market need to be more liquid in order to attract more investors.
Mike Uzor, chief
executive officer of Datatrust Consulting, a business advisory firm,
said, “In developed market, investors can cut short their losses by
selling their stocks whenever those stocks want to go down. But in our
market, cutting short your losses is not that available.”
He said investors’
confidence can only be achieved when there is a market “where you can
buy any stock you desire and sell any time you wish to sell.”
However, analysts at Renaissance Capital, an investment bank, said
with the current attractive valuation of banks, “we see a lot of upside
potential for equities as the market comes to terms with the
finalisation of banking sector reforms and macroeconomic indicators
point to sustained growth.”
