The equities market recorded a positive performance yesterday as investors embarked on bargain hunting, taking advantage of highly discounted stocks.
The last minute rally resulted in 24 stocks appreciating in value as against 10 that depreciated. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (SE ASI) rose 0.73 per cent to close at 26,609.34, while year-to-date decline improved to 15.3 per cent.
Many of the stocks are trading half their year’s opening value following an unprecedented bear run witnessed in the market since the beginning of the year. However, a day to the end of the year, some investors are taking advantage of the low valuations to increase their stakes.
Among the price gainers were bellwethers such as Nestle Nigeria Plc, Seplat Petroleum Development Company Plc, Dangote Cement Plc and Zenith Bank Plc. However, Eterna Plc, NEM Insurance Plc and Union Diagnostic and Clinical Services Plc led the price gainers’ chart with 10 per cent apiece.
UACN Property Development Company Plc appreciated by 9.7 per cent, just as Wema Bank Plc and Seplat chalked up 9.3 per cent and 8.7 per cent respectively.
Neimeth Pharmaceuticals International Plc garnered 8.7 per cent, while Cornerstone Insurance Plc, Royal Exchange Plc and Custodian Investment Plc 7.8 per cent, 7.1 per cent and 6.1 per cent in that order.
Also, investors appeared to have reacted positively to Dangote Cement Plc’s proposal to buy back part of its shares sometime in the future as the stock gained yesterday.
Shareholders of the cement firm are expected to approve a proposal that will enable the company to buy back 10 per cent of its paid up shares at an extra-ordinary general meeting slated for January 22, 2020.
According to Dangote Cement, the programme is in line with its corporate strategy to improved its return on equity, and shareholder value in order to future long term growth.
“The relevant shares will be repurchased out of the profits of the company and any such number of shares bought under the programme is required to be cancelled in accordance with the Securities and Exchange Commission (SEC) rules and the NSE rule book which will consequently lead to a reduction in issued share capital,” the company explained.
Meanwhile, C & I Leasing Plc led the price losers for the day, shedding 10 per cent to close at N5.40 per share. Learn Africa Plc trailed with 9.6 per cent, while Union Bank of Nigeria Plc and Unity Bank Plc shed 8.3 per cent.