Stocks close higher as bulls consolidate control

Financial markets 110 July 2014, Lagos – The Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.41 per cent to hit a new high of   43,039.45 yesterday as the market rally entered the second day. Market capitalisation added N59 billion to close higher at N14.212 trillion.

The equities market had witnessed a rebound the previous day with a growth 0.24 per cent as investors continued to take position of the announcement of second quarter results.

However, the positive momentum was sustained yesterday with the ASI consolidating gains from the previous session. The NSE Oil and Gas Index led in terms of sectoral performance for yesterday, rising by 2.0 per cent., driven by Forte Oil Plc.

Similarly, the Industrial Index appreciated 0.8 per cent on the back of Ashaka Cement (2.1 per cent) and WAPCO (1.7 per cent).  Analysts at Afrinvest said confidence within the industrial space has been ramped up significantly within the last few months as Lafarge WAPCO consolidates its position in the market.

Shareholders of the company yesterday voted to support the creation of  Lafarge Africa Plc, a leading Sub Saharan  Africa building materials platform.

Apart from the  oil and gas and industrial indices that appreciate, the NSE  Consumer and Banking indices also  went up by 0.6 per cent  and 0.4 per cent in that order. It was only the NSE  Insurance  Index that declined  by 0.3 per cent on account of profit-taking in Continental Reinsurance (2.5 per cent) and NEM Insurance Plc  (1.2 per cent).

Meanwhile, 29 stocks appreciated  as against 18 stocks that depreciated. NPF Microfinance Bank Plc, which recorded a growth of  34 per cent growth in profit for the half year to June 30, 2014, led the price gainers with 9.5 per cent appreciation. Forte Oil Plc trailed with  a gain of 6.0 per cent, just as A.G Leventis Plc rose by 4.8 per cent.

Conversely,  Ikeja Hotels Plc led the price losers with 4.9 per cent, trailed by University Press Plc with a decline of 4.4 per cent. Continental Reinsurance Plc shed 2.5 per cent.

About the Author