News Column

Stock Market Upbeat On Positive Sentiment

July 2, 2014

The Nigerian stock market continued its positive run yesterday as investors scramble for stocks with inherent value ahead of expected second quarter results.

Traditionally, the Nigerian equities market witnesses a bull market when results are about to hit the market.

Specifically, yesterday's performance was driven by the huge demand for shares across the banking, conglomerates and insurance sectors.

Companies such as, Continental Reinsurance Plc, Access Bank Plc, WAPIC Insurance Plc, TRANSCORP Plc and Zenith Bank in that order, were the major focus for investors.

Others include Japaul Oil and Maritime Services Plc, Fidelity Bank Plc, Oando Plc, FBN Holdings Plc and UBA Plc.

Consequently, the performance indicator of the Exchange, the All-Share Index or ASI appreciated by 0.30 per cent to close at 42,611.32 (this brings the year-to-date appreciation to 3.10 per cent) relative to the previous day trading session's closing figure of 42,482.49.

Similarly, the market capitalisation of listed equities went up by N43 billion or 0.30 per cent to close at N14.070 trillion from N14.027 trillion the previous day. The turnover by volume of transaction increased by 51.99 per cent relative to the previous day trading session closing figure.

However, the value of transaction decreased by 34.19 per cent. Meanwhile, the banking sub-sector of the financial service sector retained its dominance as it led the equities sector with a total of 177.50 million ordinary shares valued at N2.10 billion executed in 1,369 deals.

The volume of shares sold in the banking sector was largely driven by the activity in the shares of Access Bank Plc, Fidelity Bank Plc, Zenith Bank Plc and UBA Plc.

Trading on the shares of the four banks accounted for 146.1 million ordinary shares or 82.3 per cent of the subsectors' turnover.

At the end of trading, the price movement chart of the NSE displayed a total of 28 stocks that appreciated in value (previous day was 24), 25 stocks depreciated in value (previous day 26) while 65 stocks remain unchanged making a total of 114 stocks that were actively transacted in yesterday's trading.

Seven-Up Bottling Company Plc led on the gainers table with a 10.25 per cent or N9.53 gain to close at N102.53 per share. UACN trailed with 5 per cent or N3.10 gain to close at N65.10 per share.

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Source: AllAfrica

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