Only last week, the value of Nigerian equities rose by about N284billion as investors retained their buy-decision at the Customs Street. Price gains in the blue-chip stocks contributed majorly to this huge gain witnessed in equities value at the Nigerian bourse.
As buy tendencies remained upbeat last week the Nigerian Stock Exchange (NSE) performance indicators –All Share Index (ASI) and market capitalisation closed northwards.
For instance, equities market capitalisation which opened last week at N11.513trillion rose to N11.797trillion, while All Share Index grew by 897.53 point or 2.49 percent from 36, 010.28 points to 36, 907.81 points.
Market watchers observed that among others positive factors driving investors’ sentiment in favour of equities include impressive full year and first-quarter (Q1) financials of listed companies.
Last Friday, Dangote Cement plc led other stocks in price appreciation after it rose from N180.11 to N187, adding N6.89. This was followed by Nestle Nigeria plc which rallied from N945 to N950, adding N5; while Nigerian Breweries plc joined the top gainers league after its share price rose from N174.50 to N179, adding N4.50. Others include Julius Berger which rose from N54.50 to N58.25, after adding N3.75, and International Breweries plc which rallied from N26.07 to N28.67, adding N2.60.
Top on the losers list are stocks like Total Nigeria plc, Lafarge Cement Wapco plc, FBN Holdings plc, National Salt Company of Nigeria plc, and Oando plc.
Total Nigeria plc declined from N172 to N165, after losing N7. Lafarge Cement Wapco plc dropped from N95 to N92.15, losing N2.85. FBN Holdings plc declined from N18.99 to N18.57, shedding N0.42. National Salt Company of Nigeria plc dipped from N13.30 to N12.90, losing N0.40; while Oando also declined from N15.50 to N15.10, after losing N0.40. Meanwhile, Nigerian interbank lending rates rose 1.25 percentage points on Friday to an average of 14.5 percent, compared with 13.25 percent the preceding week as payment for foreign exchange and bonds purchases drained liquidity.
“The market opened with a very minimal cash balance on Friday, while the payment for foreign exchange and bonds further drained liquidity in the market pushing up cost of borrowing,” one dealer said.
Debt Management Office (DMO) sold N110 billion ($700 million) worth of bonds with maturities ranging from five years to 20 years at higher yields across, apart from a note maturing in 2015. Traders said the market opened with a cash balance of about N72.7 billion, compared with N166 billion the preceding week.
The secured Open Buy Back rose to 14.25 percent, compared with 13 percent, 2.25 percentage points above the central bank’s benchmark rate of 12 percent. Overnight placement climbed to 14.5 percent, from 13.25 percent, while call money rose to 14.75 against 13.25 percent the preceding week.
“We expect a liquid market next week arising from the disbursal of portion of budget allocations to government agencies and rates are expected to drop to 10 percent level for overnight placement,” another dealer said.
IHEANYI NWACHUKWU
