Trading at the stock market opened on a positive note yesterday as the benchmark the Nigerian Stock Exchange (NSE) All-share Index rose for the first time after nine days of persistent decline.
The bulls returned pushing the NSE All-share Index by 1.34 per cent from 20,902.95 to close at 21,183.34, while market capitalisation of equities added N96 billion to close at N6.762 trillion.
The nine-day bear run had assisted in depressing the market value by N562 billion within one month before the reprieve of Monday.
Analysts at FBN Capital Limited, had linked the negative trend in the market to exit of offshore investors, saying domestic investors were yet to return to the market as expected.
“The domestic institutional investor, badly burnt by the domestic credit event, is mostly on the side-lines. The offshore investor in naira debt securities has been exiting the market, creating pressure on the currency. There is a risk of a pullback on equities,” they said.
However, some discerning investors appear to be taking advantage of the low prices, a development that attracted the bulls back to the market Monday.
By the close of trading, 20 equities added value led by Nigerian Breweries Plc with a gain of N4.00 to close at N100 per share. Dangote Cement Plc trailed with a gain of N3.49 to close at N105.50 per share.
Market operators said the demand for Dangote Cement might not be unconnected with the inauguration of the line three of its Obajana cement plant, which is expected to add 5.25 million metric tonnes per annum to its capacity.
With the inauguration of the new line yesterday, production capacity of the Obajana plant of Dangote Cement will be raised to 10.25 million metric tonnes per annum.
Presco Plc chalked up N0.73 to close at N15.48, while Oando Plc and UAC of Nigeria Plc garnered N0.28 and N0.10 respectively. Guaranty Trust Bank Plc and May & Baker Nigeria Plc also made the top of the gainers’ table with N0.09 and N0.08 in that order.
Conversely, 18 stocks still played host to the bears led by CAP Plc, which went down by N0.50 to close at N24 per share. Forte Oil Nigeria Plc trailed with a decline of N0.44 to be at N10.00 per share.
Dangote Flour Mills Plc, Cement Company of Northern Nigeria Plc and Eterna Oil Plc shed N0.29, N0.25 and N0.14 respectively.
Meanwhile, investors traded 161.269 million shares worth N1.221 billion in 3,464 deals yesterday. The financial services sector led with 103.394 million valued at N659.62 million in 1,965 deals. Thisdaylive news