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•Investors gain N300bn
By Chinwendu Obienyi
Banks’ stocks were the toast of investors that traded on the floor of the Nigerian Exchange Limited (NGX) on Thursday following the new appointments of Chief Executives at Union, Keystone and Polaris banks by the Central Bank of Nigeria (CBN).
The nation’s bourse had paused its winning streak on Wednesday as profit-taking activities in MTNN and Tier-1 bank stocks undermined market performance, leading to its All Share Index (ASI) and market capitalisation recording lower indices, respectively, with analysts stating that investors panicked at the apex bank’s decision to sack the Board and Management of Union Bank, Keystone Bank and Polaris Bank.
However, at the close of transaction proceedings yesterday, the ASI rebounded from its cool-off, appreciating by 0.70 per cent to close at 82,597.04 points from 82,024.38 points recorded in the previous trading session. A cursory look at the performance data provided by NGX, revealed that banking stocks – FBN Holdings, GTCO, UBA, Zenith Bank and AccessCorp were the major drivers of the bullish run.
For instance, MTNN (+0.35 per cent), Zenith Bank (+1.99 per cent), UBA (+4.94 per cent), BUA Cement (+0.54 per cent), and GTCO (+2.27 per cent) recorded price gains. Dangote Cement, BUA Foods, Airtel Africa, and Seplat recorded no price changes.
AccessCorp appreciated by 1.08 per cent to cross over into the N1 trillion market capitalization level today. FBNH also appreciated by 6.78 per cent to hit a market capitalization of N989 billion, N11 billion shy of the N1 trillion mark.
Similarly, market capitalisation closed at N45.199 trillion from N44.885 trillion, representing a gain of N313 billion. Accordingly, the market is on track for a week of gain as year-to-date (YTD) return rose to 10.46 per cent.
The impressive gain may be connected to the CBN’s announcement of new Chief Executive Officers (CEOs) and Executives to oversee the affairs of the banks, a stockbroker who craved anonymity while speaking to Daily Sun via a telephone chat, stated.
Meanwhile, trade turnover settled lower relative to the previous trading session, with the volume and value of stock transactions decreasing by 47 per cent and 43.20 per cent, respectively. A total of 877.28 million shares valued at N14.41 billion were exchanged in 14,919 deals as compared with 1.64 billion shares valued at N25.38 billion recorded on Wednesday.
Investors’ appetite for stocks increased as 44 securities led the gainers’ chart while 21 others were on the losers’ chart.
Royal Exchange led the gainers’ with 10 per cent to close at 0.99 kobo per share, Guinea Assurance followed with 10 per cent to close at 0.44 kobo, Julius Berger trailed with 9.92 per cent to close at N56.50, Cadbury increased by N9.77 per cent to close at N21.90 while TIP garnered 9.74 per cent to close at N1.69.
On the flipside, Ikeja Hotel led the laggards with 10 per cent to close at N7.83 per share. AbbeyBDS fell by 9.66 per cent to close at N2.73, Caverton similarly dropped 9.66 per cent to close at N1.87, DaarComms continued its descent, losing 9.38 per cent to close at 0.87 kobo while NPF Microfinance Bank declined by 7.91 per cent to close at N1.98.
