Nigerian Stock Market Rebounds as Investors Swoop on Bank Stocks

Buyback Fever Pushes Dangote Cement Share Price Up By 10 percent

The equities market rebounded yesterday after opening the week on the bearish note on Monday due to bargain hunting in banking stocks. The market, which shed 0.24 per cent the previous day, pared losses yesterday for the Nigerian Stock Exchange (NSE) All-Share Index to appreciate by 0.68 per cent to close at 31,007.25. Similarly, the market capitalisation appreciated by 0.68 per cent to close at N11.32 trillion.

Bargain hunting in banking stocks propelled the rebound as investors swooped of UBA, GTBank, FBN Holdings, Stanbic IBTC Holdings and Zenith Bank plc among others.

In all, 24 stocks appreciated, while 14 depreciated. AXA Mansard Insurance Plc and Diamond Bank Plc the price gainers with 9.8 per cent apiece trailed by University Press Plc with 7.5 per cent.

United Bank for Africa Plc added 6.6 per cent, just as Union Diagnostic and Clinical Services Plc went up by 4.1 per cent. GTBank Plc and FBN Holdings Plc chalked up 3.7 per cent and 2.7 per cent respectively.

Conversely, Linkage Assurance Plc led the price losers with 9.6 per cent, followed by Veritas Kapital Assurance Plc with 9.0 per cent. May & Baker Nigeria Plc and Mutual Benefits Assurance Plc shed 8.0 per cent each. Other to price losers were: Regency Alliance Insurance Plc (4.7 per cent); Lafarge Africa Plc (4.4 per cent). The cement manufacturing firm, yesterday announced plans to raise N89.2 billion from the market through a rights issue.

LASACO Assurance Plc and ABC Transport Plc were also among the price losers, shedding 3.5 per cent apiece.

Meanwhile, activity level fell as volume and value traded declined by 20.5 per cent and 22.2 per cent respectively to close at 198.5 million shares and N2.1 billion respectively as against 249.73 million shares and N2.115 billon the previous day. The top traded stocks by volume in yesterday’s session were FBN Holdings Plc (63.9 million units), Access Bank Plc (23.2 million units) and ETI (16.5 million units) while the top traded stocks by value were FBN Holdings (N479.3 million ), GTBank Plc (N407.3 million), and ETI (N263.6 million).

In terms of sectoral performance was mixed as two sectors tracked closed in the green, two in the red while one closed flat. Due to the buying interest in banking stocks, the NSE Banking Index got the highest appreciation of 2.6 per cent. The NSE Insurance Index went up by 0.7 per cent.

However, the NSE Industrial Goods Index and NSE Consumer Goods Index closed in the bears’ territory for the second consecutive session falling by 0.9 per cent and 0.1 per cent respectively.

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