All-Share Index Rises 1.8% as Local Funds Focus on Banking Stocks

Goddy Egene

Nigerian equities jumped 1.84 per cent yesterday as gains by banking stocks lifted the Nigerian Stock Exchange (NSE) All-Share Index to close at 26,843.11. Market operators said local investors shut out of the central bank’s open market operations (OMO) were beginning to focus attention on shares, noting that banking stocks were the main attraction.

The Central of Nigeria (CBN) had last month barred local investors from participating in its OMO auctions, a move intended to draw more foreign interest to improve dollar liquidity and boost the Naira. Analysts had said the move would eventually lead to higher patronage of the equities market by investors.

One fund manager, who said he had been investing in cash and bank deposits since the central bank announcement, was quoted to have said he thought the restriction from participating in OMO auction could be relaxed soon as excess liquidity affects the markets.

At the close trading yesterday, 34 stocks appreciated while only three stocks depreciated. The banking stocks dominated, making the Nigeria’s top 10 banking shares, represented by the NSE Banking Index to jump by 7.04 per cent.

Among the banking stocks that appreciated yesterday were:

Access Bank Plc, FBN

Holdings Plc (9.6 per cent apiece); FCMB Group (9.5 per cent); Wema Bank Plc (9.3 per cent); Unity Bank Plc (8.9 per cent); United Bank for Africa Plc (8.8 per cent); ETI Plc (8.7 per cent);Fidelity Bank Plc (8.4 per cent); Jaiz Bank Plc ( 8.3 per cent);Zenith Bank Plc (7.5 per cent); GTBank Plc (6.7 per cent) and Stanbic IBTC Holdings Plc (2.4 per cent) and Sterling Bank Plc (1.3 per cent).

The three price losers were led by Ikeja Hotel Plc with 9.3 per cent, trailed by Champion Breweries Plc with 9.1 per cent, while MTN Nigerian Communications Plc shed 0.12 per cent.

Meanwhile, activity level was mixed as volume traded rose 2.3 per cent to 624.8 million shares while value traded declined 9.8 per cent to N10.0 billion. The most active stocks by volume were Zenith Bank Plc (167.9 million shares), Access Bank Plc (99.3 million shares) and United

Bank for Africa Plc (67.8 million shares) while Zenith Bank (N3.2 billion), Nigerian Breweries Plc (N1.7 billion) and MTN (N1.6 billion) led by value.

In terms of sectoral performance, the NSE Banking Index led with 7.0 per cent, trailed by the NSE Insurance Plc. The NSE Industrial Goods Index rose 1.2 per cent, just as the NSE Consumer Goods Index garnered 1.0 per cent. Conversely, the NSE Oil & Gas Index declined by 1.6 per cent.