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These stocks helped NSE to resume New Year on a positive note

Domestic investors strengthen control of Nigeria’s equities trading

Increased interest in largely capitalised stocks like BUA Cement Plc, Lafarge Africa Plc, GTBank Plc, Flour Mills Nigeria Plc, and Dangote Sugar Refinery Plc contributed in no small measure to the over N450billion gain recorded by equity investors on Monday, January 4, 2021.

As of 2:30 pm trade closing time, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 2.18percent, from 40,270.72 points to 41,147.39 points while the value of listed stocks increased from N21.057 trillion to N21.515trillion, adding N458billion.

“Given the less attractive nature of the fixed income segment of the capital market, we expect the domestic stock market to resume for the New Year on a positive note, albeit at a modest pace”, said analysts at Lagos-based GTI Research.

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BUA Cement Plc stock price rallied most on the Nigerian Bourse, from day-open low of N77.35 to N85, adding N7.65 or 9.89percent; followed by that of Lafarge Africa Plc which increased from day-open low of N21.05 to N22.95, adding N1.9 or 9.03percent. Also, GTBank shares were on demand, thereby pushing the price from N32.35 to N33.5, up N1.15 or 3.55percent. Flour Mills increased from N26 to N26.95, adding 95kobo or 3.65percent, while Dangote Sugar Refinery moved from day-open low of N17.6 to N18.5, adding 90kobo or 5.11percent.

In 3,438 deals, investors exchanged 211,929,100 units valued at N1.407billion.

“The bullish run witnessed in the latter half of the year was largely due to the significant drop in yields in the fixed income market which led to the migration of funds into the equity space, coupled with the attractive dividend yields and better than expected earnings results released during the year.

“We maintain our positive projection into the first quarter of 2021, however, with the gains recorded in the last few sessions, the possibility of profit taking cannot be overruled in the coming week,” according to research analysts at Vetiva in their Monday January 4, 2021 note to investors.