The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and market capitalisation increased remarkably by 1.90 percent or N521billion on Monday May 9, from week-open lows of 50,935.03 points and N27.460 trillion respectively to 51,903.44 points and N27.981trillion.
The bullish start to stocks trading in this new week pushed this year’s record positive return to new high of 21.51percent. In 7,684 deals, investors exchanged 337,564,205 units valued at N5.554billion.
Nigerian Breweries Plc led the gainers after its share price moved from N70 to N77, adding N7 or 10percent, followed by Cadbury Plc which rose from N13.55 to N14.90, up N1.35 or 9.96percent and International Breweries Plc which rose from N6.75 to N7.40, adding 65kobo or 9.63percent.
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“Our view is that the odds are more for a possibility of gains. Hence, we expect the market to close positive this week,” according to Lagos-based analysts at Meristem.
The analysts had in their May 9 note to investors said that they view the hike in rates in the United States and United Kingdom as global macroeconomic dynamics that might filter into the local market.
“Specifically, opportunities for capital repatriation on large-cap stocks that have dual listing (Airtel Africa and Seplat) could drive buying activities. Some stocks still present decent upsides to spur buying interest.
“We however note that foreign participation in the Nigerian equities market is not as strong (circa 20percent). There is also some room for profit taking on some tickers on some tickers that have gained appreciably in recent weeks,” Meristem analysts added.
