Learn Africa, Cadbury, FCMB Lead N181bn Stocks’ Appreciation

stock market
  • Learn Africa, Cadbury, FCMB Lead N181bn Stocks’ Appreciation

Learn Africa Plc, Cadbury Nigeria Plc and FCMB Group Plc outperformed others stocks traded on the Nigerian Stock Exchange on Tuesday as the bourse’s market capitalization rose by N181bn.

Learn Africa, Cadbury and FCMB appreciated respectively by 8.2 per cent, 7.4 per cent and 7.1 per cent as equities hit 37-month high.

A total of 522.357 million shares valued at N7.521bn exchanged hands in 5,120 deals.

The All-Share Index closed in the green for the fifth consecutive day, rising by 1.4 per cent to settle at 38,494.43 basis points – a level last seen in October 2014.

Thus, the year-to-date return of the benchmark index expanded to 43.2 per cent while market capitalisation rose by N181bn to close at N13.4bn.

Although the rally was broad-based, the day’s positive close can be largely attributed to gains in Dangote Cement Plc, Nigerian Breweries Plc, Guaranty Trust Bank Plc and Zenith Bank Plc, which appreciated by 1.7 per cent, 3.4 per cent, 0.7 per cent and 0.6 per cent, accordingly.

Similarly, the activity level improved as volume and value traded increased 4.4 per cent and 18.3 per cent to 522.354 million units and N7.521bn. respectively.

Sector performance remained mixed despite the markedly positive market performance as three out of the NSE five major indices closed higher with the other two indices declining.

The consumer goods index led the three gainers, up by 1.7 per cent following sustained buying interest in Nigerian Breweries, Dangote Sugar Refinery Plc and Unilever Nigeria Plc.

The other two gainers – banking and industrial goods indices – advanced by 1.3 per cent and 1.1 per cent on the back of price appreciations in United Bank of Nigeria Plc, GTBank, Zenith Bank and Dangote Cement, which appreciated by four per cent, 0.7 per cent, 0.6 per cent and 1.7 per cent.

On the other hand, the insurance index was dragged 0.6 per cent lower by declines in Aiico Insurance Plc and Continental Reinsurance Plc by 3.6 per cent and five per cent, accordingly, while the oil/gas index shed 0.4 per cent due to profit-taking in Forte Oil Plc, which declined by 3.9 per cent.

Investor sentiment as measured by market breadth strengthened compared to previous close with 31 stocks advancing versus 11 decliners.

“While we maintain a positive near-term outlook for market due to year-end portfolio re-balancing by portfolio managers, we do not rule out profit-taking in Wednesday’s (today) session by traders,” Afrinvest analysts said.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years experience as a foreign exchange research analyst and trader.

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