16 February 2016, Lagos – The Nigerian stock market continued its positive run on Monday, recording its sixth appreciation in a row. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 0.6 per cent to close at 24,827.50.
Similarly, market capitalisation added N47.4 billion to close at N8.5 trillion.
However, going by the number of price gainers, the bears are about to return to market, 13 stocks appreciated as against 23 that declined.
Vitafoam Nigeria Plc led the gainers with 9.3 per cent, trailed by Cutix Plc with 4.8 per cent. African Prudential Plc and NPF Microfinance Bank Plc followed with 4.4 and 4.0 per cent in that order.
But the Dangote Cement Plc and Seplat Petroleum Development Plc influenced the growth in the index. Dangote Cement rose by 3.8 per cent, while Seplat went up by 3.7 per cent. Seplat has witnessed renewed demand since it took over the operatorship of OMLs 53 & 55.
The Supreme Court recently ruled in favour of Seplat and Chevron Nigeria Limited in a litigation brought against both parties by Brittania-U Nigeria Limited.
The Chief Executive Officer of Seplat, Austin Avuru had said the blocks hold recoverable volumes of around 200 million barrels of oil equivalent net to Seplat.
He explained that OML 53 fits neatly within their strategy of securing, commercialising and monetising natural gas in the Niger Delta to supply the rapidly growing domestic market and will further reinforce our position as a preeminent supplier of gas in Nigeria.
“OML 55 provides us with a number of attractive opportunities to boost oil and gas output, and is consistent with our strategy of prioritising those that offer near-term production growth, cash-flow and reserve replacement potential in the onshore and shallow water offshore areas of Nigeria,” Avuru had said.
Meanwhile, the NSE Industrial Goods Index appreciated the most as gains in Dangote Cement Plc drove the index 2.0 per cent northwards. Also, the NSE Oil & Gas Index rose 0.6 per cent on renewed buy sentiment in Seplat. On the other hand, the NSE Banking and Consumer Goods indices depreciated by 1.0 per cent and 1.4 per cent respectively due to sustained selling pressures in Zenith Bank Plc (4.9 per cent) and Nestle Nigeria Plc(3.6 per cent). The NSE Insurance Index declined 0.1 per cent.
- This Day