The Nigerian stock market maintained its positive performance wednesday, surging further to record a year-to-date growth of 41.9 per cent. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) advanced by 0.38 per cent to close higher at 38,144.02, while market capitalisation added N49.8 billion to close at N13.147 trillion.
The market capitalisation had the N13 trillion mark on Tuesday, barely three weeks after crossing N12 trillion. Yesterdayâ€™s positive trend was driving by sustained interest in consumer goods and banking stocks such as Nestle Nigeria Plc, Guinness Nigeria Plc and Guaranty Trust Bank Plc.
In all, 21 stocks appreciated compared with 23 stocks that depreciated. However, volume and value traded rose 50.6 per cent and 20.3 per cent to 328.7 million shares and N6.1 billion respectively.
According to analysts at Meristem Securities Limited, â€œdespite the profit taking activities on some stocks, the marketâ€™s gain recorded at the close of trades may be attributed to the sustained rally on some large cap tickers in the consumer goods space.â€
Guinness Nigeria Plc led the price gainers, rising by 10.2 per cent to close at N87.50 per share, trailed by Jaiz Bank Plc, which advanced by 10 per cent.
Guinness Nigeria is currently raising N39.70 billion from existing shareholders through a Rights Issue. The Managing Director of the company, Mr. Peter Ndegwa recently told the capital market community that the money would optimise the company’s balance sheet for future growth and continue to deliver higher returns to investors.
â€œThe proceeds of the offer would help the company repay outstanding loan obligations, improving the operational and financial flexibility. It will also allow the company to deliver on its strategic objectives and give all our shareholders a unique opportunity to increase their shareholding in the company. Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimize our balance sheet and improve the companyâ€™s financial flexibility,â€ Ndegwa said.
Meanwhile, Nigerian Aviation Handling Company Plc closed as the third highest price gainer, chalking up 9.9 per cent. Dangote Flour Mills Plc appreciated by 9.5 per cent, while Vitafoam Nigeria Plc garnered 5.02 per cent.
Conversely, Champion Breweries Plc led the price losers with 9.3 per cent, trailed by Livestock Feeds Plc with 5.0 per cent. Conoil Plc and Continental Reinsurance Plc went down by 4.5 per cent apiece among others.