Nigerian equity has sustained rally for two consecutive weeks

Adebayo Obajemu

The Nigerian stock market has recovered from the prolonged negative returns year to date as the market hits its 10th straight bullish session on Friday, October 2nd, 2020. Year to date the, All Share Index grew by 0.54% and Market Capitalisation appreciated by 8.85% to settle at 26,985.77 points and N14.105 trillion respectively.

This significant improvement has wiped off the losses recorded since March 2020. The market returned, -20.65% in March, -14.24% in April, -5.86% in May and -8.8% in June. In July it was -8.0%, and -5.64% in August. The current market recovery can be attributed to the ongoing bullish trend precisely from 18th of September till 2nd of October 2020.

The four heavy weight stocks that determine the direction of the market emerged among gainers year to date. BUA Cement grew its share price by 130.66% to N41.75 from N18.1. Airtel grew its share price by 27.13% to N380 from N298.9. MTNgrew its share price by 23.81% from N105 to N130. Dangote Cement grew its share price by 1.41% to N144 from N142.

Neimeth Pharmaceuticals led other gainers with 190.32% growth in its share price year to date. The price of the stock moved from N0.62 at the close of trade in December 31, 2019 to N1.80 at the close of trade in October 2, 2020.

Law Union and Rocks Insurance is the second on gainers list as the share price of the underwriting firm grew by 132% from N0.5 to N1.16.

BUA Cement is third on the list of gainers year to date as its share price grew by 130.66% to N41.75 from N18.1.

Other among top ten gainers year to date include: May & Baker (50.26%), Cornerstone Insurance (46.67%), Okomu Oil (43.88%), Ekocorps (41.18%), United Capital (39.17%), FTN Cocoa (30%) and Vita foam (29.55%)