Stock market records significant improvement

Trading activities at the Nigerian Stock Exchange (NSE) rebounded at the close of transactions this week by 4.88 per cent after weeks of wobbly recovery.
Market statistics on the last trading day of the week shows that the NSE market capitalisation closed at N6.938trillion as against the N6.615trillion recorded the previous week, while the NSE All-Share Index (ASI) also closed high at 21,756.50 basis points, gaining 489 units.
On year-to-date performance, the NSE recorded a 4.95 per cent increase.
The total volume traded in the week closed at 2.04 billion units valued at N15.73billion compared with the 1.60 billion units valued at N9.26 billion recorded last week. The volume transaction in the week when compared with the previous week data moved up by 27.81 per cent. Weekly value also went up by 69.8 per cent as against the 18.61 per cent recorded last week.
Analysts say the market this week rallied on the back of first quarter 2012 financial results posted by some companies particularly in the banking sector.
Market analysts at Afrinvest West Africa, an investment bank, explained that four top-tier banks, First Bank, GTBank, UBA and Zenith Bank bagged respective gains of 20.8 per cent, 8.1per cent, 9.0per cent and 5.2per cent cumulatively in the week under review.
“The institutional purchases also led to a 22.4 per cent cumulative gain in FCMB” stock,” he said, noting that “the current rally in the sector could however be an incentive to participants to book profit in sessions next week.”
Financial Services sector emerged the most traded sector in the week in terms of volume. The volume traded in the sector this week alone closed at 1.76 billion units, valued at N10.78billion and exchanged in 10,826 deals compared with 631.56 million units, valued at N4.27million and exchanged in 8,266 deals in the preceding week. The volume traded in the sector accounted for 86.2 per cent of the entire market compared with 39.38per cent of the ratio recorded last week.
UBA Plc led the market volume for the week to displace Transcorp Plc as top traded stock on the transaction volume chart last week.
In the same vein, Nigerian Beweries also rallied during the week on the back of its first quarter 2012 results, recording 11.4per cent at the close of the week. Market watchers said current demand also suggests that this rally could continue early next week. Guinness Nigeria was not divergent to the positive trend, bagging 4.5 per cent in the week.

Healthy demand for Nascon throughout the week led to a 26.6per cent gain. Also on the up-tick were Dangote Flour, Cadbury and Dangote Sugar with gains of 16.2per cent, 2.7per cent and 2.5per cent respectively.

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