Nigerian stocks climb higher on increased demand for bank shares

Increased appetite for bank stocks among investors saw Nigerian stocks advanced for the third trading day on Tuesday as the benchmark index added 0.48 percent.

Big lenders Zenith, GTCO and FBN Holdings contributed most to the jump, with trade volume improving by 11 percent and turnover by 28 percent.

“This week, we expect mixed sentiments in the equities market, comprising of pockets of buy interests across fundamentally sound stocks, and bearish sentiments arising from an upward reversal of yields in the fixed income market,” said analysts at United Capital in their outlook note seen by PREMIUM TIMES.

“We recommend a cautious approach for Equity vested investors and fund managers, with a strategic switch to defensive stocks with strong corporate actions and fundamentals,” they added.

Market breadth was positive as 33 gainers were reported compared to 15 decliners. The remaining 66 stocks participating in Tuesday’s trading saw no price movement.

The all-share index grew by 252.1 basis points to 52,621.2, while market capitalisation climbed to N28.7 trillion.

Year to date, the index is up by 2.7 per cent.

TOP FIVE GAINERS

Transcorp appreciated by 9.9 per cent to close at N2.90, while Tripple Gee enlarged by 9.8 per cent to end trade at N3.24.

Unilever rose to N14.7, notching up 9.7 per cent in the process.

University Press Limited went up by 9.6 per cent to N2.05. Chams completed the top 5, climbing by 9.4 per cent to N0.35.

TOP FIVE LOSERS

Chellarams led the losers, declining by 9.9 per cent to close at N1.63. Sunu Assurances shed 9.4 per cent to end trade at N0.48.

C&I Leasing fell to N3.20, losing 8.8 per cent. Japaul slumped to N0.33, recording a 5.7 per cent depreciation.

Cadbury closed at N16.40, going down by 5.5 per cent.

TOP FIVE TRADES

Altogether, 351 million shares, estimated at N5.2 billion, were traded in 5,946 deals.

UBA was the most active stock, with 62.4 million of its shares worth N511.1 million traded in 421 deals. Zenith Bank’s shares of 59 million units, priced at N1.6 billion, exchanged hands in 536 transactions.