Stock Market Rises By N128bn On Demutualisation
The nation’s bourse on Wednesday overcame its negative posture growing by N128bn following bargain buying in Dangote Cement and Nestle as well as news of approval of demutualisation, the News Agency of Nigeria reported.
Specifically, the market capitalisation rose by N128bn or 0.63 per cent to close at N20.37tn against N20.24tn recorded on Tuesday.
Similarly, the All-Share Index appreciated by 244.40 or 0.63 per cent to close at 38,931.25 from 38,686.85 achieved on Tuesday.
Consequently, the month-to-date and year-to-date losses moderated to 2.2 per cent and 3.3 per cent respectively.
The market gain was driven by price appreciation in large and medium capitalised stocks amongst which are Nestle, Dangote Cement, Nigerian Breweries, May & Baker and Africa Prudential.
The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, attributed the reversal to high dividend yield due to price correction.
Omordion said bargain hunters were taking advantage of relatively low equity prices to increase their stake in the market.
He said the development coincided with the news of the approval of the demutualisation of the Nigerian Stock Exchange by the Securities and Exchange Commission and the Corporate Affairs Commission.
According to him, the news is expected to boost liquidity in the stock market.
The market recorded 23 gainers and 23 losers.
Morison Industries led the gainers’ chart in percentage terms, gaining 9.72 per cent to close at 79k per share.
Champion Breweries followed with 8.91 per cent to close at N2.20,