Despite a seemingly conservative outlook of Analysts at the Nigerian Stock Exchange owing to concerns ahead of the 2019 elections, the market, which recorded a dip last week, had opened this week on a positive note since Monday, leading to a gain of N235 billion in market capitalization from N11.124 trillion to N11.329 trillion in three days.
The All-share index (ASI) was up by 323.15 points, representing an increase of 1.07 per cent to close at 30,460.68 points following gains in Guinness Nigeria Plc, Forte Oil Plc, Dangote Cement Plc and United Bank for Africa Plc among others.
Total volume of trades increased by 1.92 per cent to 305.81 million units, valued at N2.1 billion and exchanged in 3,642 deals. Transactions in the shares of Diamond Bank topped the activity chart with 141.23 million shares valued at N296.58 million. Fidelity Bank followed with 18.61 million shares worth N38.22 million, while Guaranty Trust Bank traded 17.44 million shares valued at N577.75 million.
Market capitalisation also saw an increase by N120 billion, closing at N11.359 trillion. A total of 24 stocks appreciated compared with 16 others that depreciated. Sovereign Trust Insurance Plc and Veritas Kapital Assurance Plc led the price gainers with 10 per cent apiece. Guinness Nigeria Plc followed with 9.6 per cent, just as Honeywell Flour Mills Plc and NEM Insurance Plc chalked up 9.5 per cent each. Custodian Investment Plc added 9.4 per cent just as Niger Insurance Plc, Union Diagnostic and Clinical Services Plc and University Press Plc garnered 9.1 per cent, 8.0 per cent and 5.2 per cent respectively.
UBA was also among the price gainers, rising 2.0 per cent or N0.15 to close at N7.45 per share as investors took position ahead of dividend announcement by the bank. The board of directors of the bank will meet soon to approve its 2018 financial accounts and recommend a final dividend for the year. Having paid an interim dividend for the half year, expectations are high that UBA will give a dividend that is higher than what was paid the previous year.
Meanwhile, Analysts urge investors to invest strategically in stocks with good fundamentals.
