Africa (Commonwealth Union) _ The Nigerian equities market began the week on a strong note on Monday, recording a ₦79 billion boost in investors’ wealth as sustained buying in large- and mid-cap stocks drove performance higher.
The All-Share Index (ASI) appreciated by 125.86 basis points, or 0.09%, to close at 145,880.77 points. Market capitalisation also improved accordingly, closing the day at ₦92.294 trillion.
The rally was underpinned by advances in bellwether counters such as BUA Foods, Stanbic IBTC Holdings, Julius Berger, NEM Insurance, and Nigerian Enamelware. Market breadth reflected the upbeat mood, with 41 winners against 36 losers.
The gainers’ list included AIICO Insurance, SUNU Assurance, Stanbic IBTC Holdings, UPDC, Veritas Kapital Assurance, Universal Insurance, and The Initiates Plc (TIP), which all went up by 10% to close at ₦3.85, ₦5.50, ₦111.10, ₦8.69, ₦2.31, ₦1.21, and ₦13.20 per share, respectively. Close behind was Cornerstone Insurance, going up 9.98% to close at ₦7.05, and AXA Mansard Insurance going up by 9.97% to ₦16.10.
Conversely, Abbey Mortgage Bank and Associated Bus Company topped the losers’ list with 10% falls each, closing at ₦5.67 and ₦4.50 per share. UACN fell 9.99% to ₦75.25, Haldane McCall fell 9.92% to ₦4.36, and VFD Group fell 9.70% to ₦12.10 per share.
Trading activity slowed, with the total volume of shares dropping 4.5% to 2.116 billion units worth ₦19.400 billion in 40,435 deals. Trading was dominated by Linkage Assurance through 703.588 million shares worth ₦1.587 billion, followed by Universal Insurance through 230.536 million shares worth ₦278.907 million. AIICO Insurance had 154.727 million shares traded for ₦595.341 million.
Sterling Financial Holdings Company exchanged 120.198 million shares worth ₦987.860 million, and Veritas Kapital Assurance exchanged 29.051 million shares worth ₦668.227 million.
Commentators expect the positive mood to persist in the near term, but selectively, as investors weigh hopes of fundamentally solid stocks against the urge to take short-term profits. United Capital Plc observed that focus is likely to be on the financial services industry banks and insurers whose earnings are robust and valuations reasonable.
Profit-taking can surface in strongly capitalized counters following recent rallies,” it cautioned, adding that overall sentiment will lean towards remaining cautiously optimistic, with quality concerns engendering persistent demand in the face of intermittent selling-offs.
