The Equity segment of the Nigerian Stock Exchange ( NSE) yesterday extending last week’s rally helped by gains in cement, fuel retailing and banking shares to lift the Market to a 23 months high with N417 billion to close the market capitalization at N11, 262 Trillion.
The NSE All Share Index (NSE) also rose by 3.8 per cent (1206 basis point) to close at 32, 578.38 basis point.
A pickup in oil prices and a more stable currency have improved economic prospects in Nigeria, prompting investors to buy into the stock market.
Shares rose on Monday for the fifth consecutive session, with Dangote Cement, which accounts for a third of the market’s value, surging 8.85 percent.
It helped push the benchmark index up 4.01 percent to cross 32,000 points in early trade.
First Bank jumped by its 10 percent maximum limit to trade at 7.07 naira, the highest level since July 30, 2015, while gasoline retailer Mobil Oil was also up 10 percent, at 319.72 naira.
The banking index rallied 11.6 percent, outperforming the overall market as fund managers took positions in anticipation of upbeat first-half results from Nigerian companies, due out next month.
The summary of the trading activities shows that 640 million shares, worth N7.6 billion exchanged hands in 7,024 deals.
Rasheed Yusuf, senior stock dealer at Trust Yields Securities and Investment Ltd, said:
“Some major players see positive signs on the economic outlook and are taking positions to benefit from possible improved performances in all the sectors of the economy.”
Low valuations also made stocks attractive, he said.
“The increase in the supply of foreign exchange, improved crude oil production and prices, improved investor confidence in the economy and an increase in the participation of both local and foreign investors in the market,” have been driving the market’s recent gains, said FSDH Merchant Bank in a research note.
Meanwhile, Following the successful acquisition of 60 per cent equity stake of Mobil Oil Nigeria Plc by Nipco Investment Limited (NIL) from ExxonMobil Oil Corporation, the company has applied to regulators to acquire additional shares from minority shareholders. The financial transaction, which is being handled by Cordros Capital and Zenith Capital as financial advisers, has been approved by the Securities and Exchange Commission (SEC).