…As Naira trades N359 to dollar, at parallel market***
The Nigerian equities market opened trading for the week on Monday on a positive trend due to price appreciation in high capitalised stocks, resulting in market indicators appreciation of N93 billion or, 0.71 per cent, to reverse the earlier bearish trend.
Specifically, the All Share Index inched 190.60 points or 0.71 per cent to 27,115.89 compared with 26,925.29 achieved on Friday.
Also, the market capitalisation which opened at N13.121 trillion rose by N93 billion or 0.71 per cent to close at N13.214 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria, Stanbic IBTC, Dangote Cement, Zenith Bank and Dangote Flour Mills.
Capital market analysts attributed the positive growth to Zenith International Bank impressive half year results released in the market.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. said that investors seem to have reacted positively to the result.
Meanwhile, analysts at Afrinvest Limited noted that “in the absence of a positive catalyst that would move the market, we expect investor sentiment to remain weak.”
Market breadth turned positive with 20 gainers and 13 losers.
Courteville Business Solutions recorded the highest price gain of 10 per cent, to close at 22k per share.
UACN came second with a growth of 6.67 per cent to close at N4.80, while FCMB Group appreciated by five per cent to close at N1.68 per share.
AIICO Insurance rose by 4.92 per cent to close at 64k, while Oando appreciated by 4.48 per cent to close at N3.50 per share.
Conversely, Cadbury Nigeria led the losers’ chart with a loss of 9.71 per cent to close at N9.30 per share.
Chams trailed with 8.70 per cent to close at 21k, while Unity Bank went down by 5.80 per cent to close at 65k per share.
AXA Mansard Insurance lost 5.56 per cent to close at N1.70, while Jaiz Bank shed 5.41 per cent to close at 35k per share.
The total volume traded declined by 2.92 per cent to 250.74 million shares worth N4.17 billion exchanged by investors in 4,116 deals.
This was in contrast with a turnover of 258.29 million shares valued at N4.17 billion achieved in 4,662 deals on Friday.
Transactions in the shares of Lafarge Africa topped the activity chart with 47.15 million shares valued at N660.02 million.
Transcorp followed with 41.07 million shares worth N36.96 million, while Zenith Bank traded 26.72 million shares valued at N452.63 million.
United Bank for Africa (UBA) sold 17.2 million shares worth N97.34 million, while FBN Holdings transacted 16.53 million shares valued at N77.62 million.
In the meantime, the Naira on Monday traded at N358.6 to the dollar at the parallel market in Lagos.
The pound sterling and the euro closed at N445 and N396, respectively.
At the Bureau De Change (BDC) segment, the naira was exchanged at N358.6, while the pound sterling and the euro closed at N445 and N396, respectively.
Trading at the investors’ window saw the naira closing at N363.32 as market turnover stood at 477.04 million dollars.
The naira, however, traded at N306.95 to the dollar at the official CBN window.
The Naira had remained stable at the parallel market, due largely to the interventions of the CBN.
As the rate stands, it appears the parallel market rate determines the prevailing rate for most buyers.