by OLUSHOLA BELLO, Lagos
Hopes that the Nigerian economy is recovering is beginning to translate at the stock market which continued its rally by N73.3 billion as investors interest boosted activities at the Nigerian Stock Exchange.
Overall equities market performance measures, the NSE All Share Index (ASI) and market capitalisation rose 209.7 basis points as stocks extended their advance on sustained bargain hunting activity.
First Bank Holdings led a rally of Nigerian banking stocks yesterday, nine of which recorded price appreciations yesterday on hopes that the Nigerian economy will emerge from recession soon, according to dealers. A stock broker, Rasheed Yusuf explained that “the market as a whole is reacting to a favourable economic indication. Everybody is now saying the recovery has started, that the economy is on the path of growth.
“The shares of First Bank are currently on demand, nobody is willing to sell. We should expect this trend to continue for the next few weeks,” Yusuf said, adding that First Bank shares were valued cheaper than its peers. Tuesday’s trading activities saw 29 stocks recording price appreciations as against 17 equities that recorded price depreciations. Mansard the price gainers appreciating by 9.47 per cent to sell at N2.08 per share while the share price of FBNH rose by 7.98 per cent to sell at N5.28.
Other major gainers during the day include CCNN which sold at N5.46 per share after a five per cent appreciation; Flourmill which had its share price rise by 4.99 per cent to close at N21.24 while Cutix share price rose to N2.11.
On the other hand, Seplat led the major price losers shedding five per cent of its share price to sell at N370.5, followed by 7UP which lost 4.99 per cent to sell at N99.75. The share price of Enamel WA was also down by 4.98 per cent to sell at N27.87 while NAHCO and Interbrew closed lower at N2.75 and N21.05 per cents respectively.
The market capitalisation at the end of the day rose to N10.21 trillion up from N10.047 trillion which it closed the market last week Friday