Investors’ confidence that new government policies would result in increased value added to the capital market triggered an unprecedented rally in the equities sector of the Nigerian Exchange Limited (NGX) yesterday, as heavy transactions in the shares of many highly-capitalised stocks, particularly Airtel Africa and Okomu Oil, increased market capitalisation by N1.2 trillion.
The All Share Index (ASI), which closed at 58,163.55 points, increased by 2,232.58 points, or 3.99%. Market capitalization increased by N1.215 trillion to reach a closing value of N31.67 trillion.
Gains in firms with medium and large market capitalization, including Airtel Africa, Okomuoil, Presco, MTN Nigeria, BUA Foods, Dangote Cement, MRS Oil Nigeria, and Nigerian Breweries, contributed to the recovery.
Analysts said that the successful start and conclusion of the 10th Assembly, as well as the suspension of Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), have all contributed to the improved performance. They added that this has given investors hope that the current administration’s reforms will eventually lead to increased market liquidity.
Cordros Securities Limited analysts stated: “The market performance was impressive as investors reacted positively to the policy signals and planned financial sector reforms from the new administration.”
61 stocks showed price growth on the chart, while 13 stocks showed price declines. The largest price increases were recorded by Guaranty Trust Holding Company (GTCO), Lasaco Assurance, NASCON Allied Industries, and Zenith Bank, which closed at N14.30, N30.80, N1.98, N17.05, and N30.80, respectively.
To close at N13.85 kobo, Ecobank TransNational Incorporated (ETI) had a 9.92% increase. The price of Jaiz Bank increased by 9.77% to N1.46 kobo at the close. To close at 79 kobo, Unity Bank rose by 9.72%. The price of FTN Cocoa increased by 9.68% to N1.02 kobo at the close. Additionally, Sterling Bank increased by 9.55 percent to finish at N2.50 kobo.
The Initiates Plc (TIP), on the other hand, trailed with a fall of 9.62% to end at 47 kobo, while Ellah Lakes and John Holt lead the losers’ chart with declines of 10% each to conclude at N3.69 and N1.26 respectively.
Veritas Kapital Assurance fell by 4.35 percent to settle at 22 kobo, while Caverton Offshore Support Group depreciated by 4.62 percent to close at N1.24. To close at N3.35 kobo, Honeywell Flourmills lost 4.29 percent of its value. To close at N1.15 kobo, UPDC suffered a 4.17 percent loss. The Royal Exchange lost N3.45% to end the day at 56 kobo.
The price of NGX Group dropped 2.76 percent to N28.20 kobo. To close at N3.92 kobo, Champion Breweries saw a 2.73 percent decline. UPL dropped 2.27 percent as well, ending the day at N2.15 kobo.
With 1,186 billion units traded in 10,369 deals for a total value of N19.226 billion, the total volume traded grew dramatically by 106.4%. United Bank for Africa (UBA) share transactions, totaling 214.944 million shares valued at N2.333 billion, topped the list of activities. Zenith Bank traded 85.7 million shares worth N2.623 billion, while GTCO traded 208.061 million shares worth N6.243 billion.
Access Holdings sold 72.112 million shares for N1.015 billion, while Japaul Gold & Ventures sold 72.596 million shares worth N37.401 million.
