Dangote Cement Lifts Market as Trading Resumes on Bullish Note

Dangote Cement Lifts Market as Trading Resumes on Bullish Note

Dangote Cement Lifts Market as Trading Resumes on Bullish Note

The stock market resumed on positive note on monday as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.05 per cent to close at 41,233.42. Similarly, market capitalisation added N16.6 billion to close at N14.9 trillion. However, the activity level reduced as volume and value traded depreciated 21.9 per cent and 39.3 per cent to 221.4 million and N2.6 billion in that order. The positive performance was largely driven by gains in Dangote Cement Plc and Guinness Nigeria Plc. In all, 21 stocks appreciated, while 18 stocks depreciated.

Eterna Plc led the price gainers with 9.7 per cent, trailed by C & I Leasing Plc with 5.0 per cent. Oando Plc garnered 4.7 per cent. Oando Plc has remained consistent in price appreciation since its technical suspension was lifted last month. Investors’ demand for the stock was reinforced with an improved results for the full year ended December 31, 2017. The company recorded profit after tax of N19.77 billion in 2017, showing a jump of 405 per cent from N3.913 billion in 2016. AIICO Insurance Plc closed as the fourth highest price gainer with 4.3 per cent, while Mutual Benefits Assurance Plc chalked up 3.8 per cent.

Conversely, Unity Bank Plc led the price losers with 5.0 per cent to close at N1.14 per cent trailed by UACN Property Development Company Plc with 4.8 per cent. NPF Microfinance Bank Plc and Linkage Assurance Plc shed 4.7 per cent apiece. First Alumium Nigeria Plc declined by 4.1 per cent among others.

Meanwhile, an analysis of the activity table showed that the top traded stocks by volume were LASACO Assurance Plc (24.3 million shares), GTBank (20.7 million shares) and Sovering Trust Insurance Plc (16.6 million shares ) while GTBank (N937.6 million), Nigerian Breweries Plc (N499.8 million) and Zenith Bank Plc (N292.4 million) were the top traded by value.

In terms of sectoral performance, three of the five tracked closed positively led by the Industrial Goods Index with 0.4 per cent on the back of gains in Dangote Cement Plc. Similarly, the NSE Oil & Gas Index went up by 0.2 per cent, while the NSE Insurance Index appreciated by 0,1 per cent.

On the contrary, the NSE Banking Index fell by 0.3 per cent, just as the NSE Consumer Goods Index went down by 0.2 per cent.

According to analysts at Cordros Capital, Dangote Cement was a major driver of market performance, as the market would have recorded a decline of 0.35 per cent loss without the counter.

“We expect the positive trend in the market to be sustained as the oil and gas space continues to witness rising bullish sentiments towards its counters,” they said.

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