Share prices appreciation: Dangote Cement, others lift equities market by N534bn

The equities market of the Nigerian Stock Exchange ( NSE ) commenced May with N534billion increase over price gainers in Dangote Cement plc, among others shares.

The market capitalisation appreciated to N12.531 trillion in first-week trading in May, 4.45 per cent increase over N11.997trillion in it closed in April.

Consequently, the equities market All-Share Index gained 4.45 per cent to 24,045.40 basis points from 23,021.01 basis points.

 This brings the equities market performance to 12.89 per cent and -10.44 per cent on Quarter-till-Date and year-till-Date performance respectively.

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The equities market gain for last week can be attributable to 15.38 per cent or N20 gain in Dangote Cement share price to N150 from N130 it opened for trading last week. Also, Nigerian Breweries plc appreciated by 25 per cent or N7.50 to close at N37.50 from N30.00.

The gain in Dangote Cement and Nigerian Breweries impacted on NSE Industrial Goods Index that closed last week at 2.20 per cent or 22.29 basis points to 1,034.88 basis points from 1,012.59 basis points it opened for trading last week.

We highlighted cheap assets prices, gradual lockdown easing, and inflows of budget facilities from the International Monetary Fund (IMF), as the key drivers of risk assets accumulation over the week.

Other sectoral performances last week were positive, as gains bellwether shares spurred gains all sector indices. The Consumer Goods index (+8.5 per cent) led the gains, followed by the Banking (+4.0 per cent), Oil & Gas (+2.8 per cent), and Insurance (+2.8 per cent) indices.

“In our opinion, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks,” Cordros Research explained.

However, the weekly market report of the NSE said, “A total turnover of 1.662 billion shares worth N18.205 billion in 28,791 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.012 billion shares valued at N9.892 billion that exchanged hands last week in 17,023 deals.

“The Financial Services industry (measured by volume) led the activity chart with 1.385 billion shares valued at N11.813 billion traded in 17,117 deals; thus contributing 83.35 per cent and 64.89 per cent to the total equity turnover volume and value respectively.

“The Services industry followed with 53.551 million shares worth N128.065 million in 1,003 deals. The third place was the Consumer Goods industry, with a turnover of 53.444 million shares worth N2.780 billion in 3,607 deals.

“Trading in the Top Three Equities namely, FBN Holdings Plc, Guaranty Trust Bank and Zenith Bank Plc. (measured by volume) accounted for 774.294 million shares worth N9.796 billion in 7,516 deals, contributing 46.59per cent and 53.81% to the total equity turnover volume and value respectively.”