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Nigerian Stock Market Hits 10-Year High as Market Cap Closes Above N15tr

By Dipo Olowookere

The positive momentum on the floor of the Nigerian Stock Exchange (NSE) continued on Thursday with the market appreciating further by 2.93 percent.

It was observed that as foreign investors take positions in consumer goods stocks, local pension funds garnered equities after being lured by the 2017 gains recorded by the stock market, converting their investments in the bond market into the equity market as a result of Federal Government’s decision to lower its local borrowing costs.

Business Post reports that Thursday’s bullish close was buoyed by sustained positive sentiments in the market as well as gains recorded by market heavyweights like Dangote Cement, Seplat and Nigerian Breweries.

At the close of business today, the All-Share Index (ASI) went up by 1,225.43 points to settle at 43,041.54 points, crossing the 43,000 mark for the first time since 2008.

Also, the market capitalisation increased by N436 billion to settle at N15.317 trillion, crossing the psychological milestone of N15 trillion for the first time in some years.

Furthermore, the year-to-date return, after the close of trades on Thursday, stood at 12.55 percent, while the market recorded 58 stocks appreciating in value and 10 depreciating shares.

The volume and value of shares exchanged by investors at the market today increased significantly with a total of 1.2 billion shares worth N17.4 billion exchanging hands in 8,968 deals against 1.1 billion units sold yesterday in 8,025 deals for N13.3 billion.

Like yesterday, Transcorp was the sold the highest number of shares, trading 208.8 million shares worth N439.2 million.

Diamond Bank transacted 149.7 million shares for N368.3 million, and Zenith Bank exchanged 129.4 million shares valued at N4.4 billion.

FBN Holdings traded 93.2 million shares worth N1.1 billion, while Access Bank transacted 89.5 million shares valued at N1.1 billion.

Our correspondent reports that when market closed for the day on Thursday, January 11, 2018, Seplat emerged the highest price gainer, adding N15.1k to its share price to settle at N675.1k per share.

It was followed by Nigerian Breweries, which rose by N6.68k to finish at N152.68k per share, and Guinness Nigeria, which advanced by N5.1k to end at N105.21k per share.

Dangote Cement increased by N5 to finish at N252 per share, while Okomu Oil appreciated by N4.46k to close at N72.15k per share.

On the flip side, Flour Mills of Nigeria, which begins subscription for its N40 billion rights issue next Monday, was the biggest price loser at the market today, shedding 40k to settle at N33 per share.

Dangote Sugar lost 30k to close at N21.50k per share, while Berger Paints depreciated by 25k to finish at N9.10k per share.

Cadbury Nigeria went down by 20k to settle at N16.80k per share, while University Press declined by 13k to close at N2.63k per share.

Investors are upbeat that the bullish run would be extended to the seventh trading session tomorrow, but they would not be surprised if profit-taking begin to take effect next week.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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