New Telegraph

NSE breaks five-year jinx, gains N1.084trn

Dangote, BUA, 7 others lead market
Buying pressure triggers circuit breaker

The Nigerian stock market yesterday soared high in more than five years, recording a gain of N1.084 trillion as massive buying pressure triggered market-wide circuit breaker for the first time due to traders mopping up shares in hunt for assets with attractive yields.

The All Share Index jumped by 6.23 per cent, highest increase since April 2015. As the gains in the benchmark index surged beyond five per cent, an automatic 30-minute trading halt was activated for the first time since its introduction in 2016, the exchange said in a statement. Circuit breakers are trading halts used by the exchanges to guard against sharp fluctuations on the market. They are designed to give the market an opportunity to take a break and adjust to all available information before re-opening the market.

The stock market was the best performing globally on the day among 93 benchmarks tracked by Bloomberg, and its 32 per cent advance in 2020 is the strongest of any major equities gauge. Dangote Cement Plc. contributed most to yesterday’s gains, advancing 8.1 per cent, followed by BUA Cement Plc. and Airtel Africa Plc., which both soared by the maximum 10 per cent allowed by the bourse. Yesterday’s surge was another boost to the upward trend that has characterised the market since the beginning of the week.

The market had recorded gain of N853 billion between Monday and Tuesday following investors’ high demand for undervalued stocks in expectation of investment inflow from the outcome of American election and discovery of COVID-19 vaccine. Findings showed that activities on the stock market, which opened the trading week on Monday at N16.206 trillion in market capitalisation and 31,016.17 in index, hit N17.059 trillion and 32,647.10 index points on Tuesday, hence gaining about N853 billion or 5.26 per cent.

The All-Share Index also grew by 1,630.93 basis points or 5.26 per cent. The index measures the performance of the stock market and also reflects how prices of stocks have moved, which in turn determines how much investors made as gains or losses. Further checks showed that the market capitalisation of equities on Monday appreciated by N641 billion or 3.96 per cent to close higher at N16.847 trillion from N16.206 trillion reported last Friday while equities market on Tuesday appreciated by N212 billion to close at N17.059 trillion from N16.847 trillion as market sentiment remained on the green zone.

These brought the cumulative gains to N853 billion or 5.26 per cent. On the current market position, the All-Share Index rose by 2,074.1 basis points or 6.23 per cent to close at 35.243.46 index points as against 33.268..36 recorded the previous day while market capitalisation of equities appreciated by N1.084 trillion or 6.23 per cent to close higher at N18.467 trillion from N17.383 trillion as market sentiment remained on the green territory. Meanwhile, a turnover of 1.19 billion shares in 10,704 deals was recorded in the day’s trading. The premium sub-sector was the most active (measured by turnover volume); with 505.35 million shares exchanged by investors in 4,222 deals. Volume in the sub-sector was driven by activities in shares of Zenith Bank Plc. and FBNH Plc.

The banking sub-sector boosted by activities in shares of Fidelity Bank Plc. and GTbank Plc. followed with a turnover of 236.66 million shares in 1,918 deals. The number of gainers at the close of trading session was 65 while decliners closed at eight. Further analysis of the day’s trading showed that C and I Leasing Plc., Cadbury Nigeria Plc., Cutix Plc., J Berger Nigeria Plc., NNFM Plc. and Presco Plc., Sterling Bank Plc., BUA Cement Plc. and Airtel Africa Plc. topped the gainers’ table with 10 per cent each to close at N4.51, N11.00, N2.09, N19.25, N7.70, N79.75, N2.42, N51.15 and N451.20 per share while Zenith Bank Plc.

followed with 9.96 per cent to close at N28.15 per share and Niemeth Pharmaceuticals Plc. with a gain of 9.92 per cent to close at N2.66 per share. On the flip side, GSPEC Plc. led the losers’ chart with a drop of 9.89 per cent to close at N4.19 per share. Eterna Oil Plc. followed with a loss of 9.86 per cent to close at N4.57 per share while May and Baker Plc. dropped by 9.72 per cent to close at N3.25 per share.

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