Trading at the stock market resumed yesterday on a bullish note as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) gained 2.32 per cent to close higher at 21,879.95, while market capitalisation added N257.5 billion to be at N11.4 trillion.
The market began its recovery last week after a bearish session that drove prices to record lows the previous week. Bargain hunting by investors led to a recovery in the prices of stocks last week, a trend that continued yesterday as more investors took advantage of low valuations.
Consequently, about 29 stocks appreciated yesterday compared to 12 stocks that depreciated. Gains posted by Dangote Cement Plc, MTN Nigerian Communications Plc and Guaranty Trust Bank Plc contributed to the positive close yesterday.
But Oando Plc led the price gainers’ chart with 10 per cent, trailed by Nigerian Breweries Plc with 9.9 per cent. Conoil Plc rose 9.8 per cent, followed by Stanbic IBTC Holdings Plc with 9.6 per cent. Chams Plc and Sterling Bank Plc appreciated by 9.5 per cent and 9.3 per cent.
Dangote Sugar Refinery Plc, Honyewell Flour Mills Plc and Jaiz Bank Plc went up by 9.3 per cent, 8.8 per cent and 8.5 per cent in that order. GTBank Plc, Unity Bank Plc and Caverton Offshore Group Services Plc chalked up 8.4 per cent, 7.1 per cent, 6.3 per cent respectively.
Dangote Cement Plc, which is currently raising N100 billion bond from the debt market also gained 4.0 per cent yesterday. . The Dangote Cement Series 1 5-year Fixed Rate Senior Unsecured Bond is being raised under the company’s N300 billion shelf bond programme. Its book-building process commenced April 3 and closed yesterday, April 14, 2020.
The bond has already elicited excitement among market operators, who said it would help broaden local investors’ investment options in the fixed income market. The stakeholders believe that the N100 billion bond will further reinforce the potential depth of the Nigerian debt capital market and the ability of local corporates to fund long term projects from the domestic debt market.
Meanwhile, PZ Cussons Nigeria Plc led the price losers’ chart with a decline of 9.0 per cent, trailed by Redstar Express Plc with 5.8 per cent. LASACO Assurance Plc and Transcorp Plc shed 4.3 per cent and 4.2 per cent in that order.
Activity level was mixed as volume advanced 77.2 per cent to 557.8 million units while value traded declined 47.9 per cent to N2.6 billion. The most active stocks by volume were FBN Holdings Plc (51.8 million shares), UBA (35.6 million shares units) and Zenith Bank Plc (35.6 million shares).