By Dipo Olowookere

Renewed bargain hunting by investors on the Nigerian Stock Exchange (NSE) lifted the equity market by 3.68 percent on Tuesday.

Business Post reports that the pre-inauguration rally was mainly influenced by the positive performances put up by banking shares.

The banking index gained the most yesterday, growing by 6.76 percent. Another top riser was the oil and gas index, which rose by 3.97 percent. The industrial index appreciated by 3.18 percent, the consumer goods index by 2.24 percent and the insurance index by 0.40 percent.

It was observed that investors quickly bought banking shares currently trading at low prices, hoping to offload them again when the time is right to sell.

This activity led to the 1112.29 points rise in the All-Share Index (ASI), which crossed the 31,000 mark again on Tuesday to close at 31,307.00 points.

However, the market capitalisation remained in the N13 trillion region, but improved by N490 billion yesterday to finish at N13.789 trillion.

Unlike the previous session, the level of activity significantly improved on Tuesday with the volume of equities traded rising by 132.31 percent to 344.3 million from 148.2 million, while the value increased by 227.87 percent to N7.3 billion from N2.2 billion.

An analysis of this showed that investors pounced on GTBank shares, buying up available units from willing sellers. At the end of the day, the company’s stocks emerged the most traded at the market with a turnover of 67.1 million units sold for N2.1 billion.

Zenith Bank followed with 52.1 million units sold for N1 billion, while FBN Holdings traded 44.7 million units worth N322.2 million.

Access Bank transacted 41.8 million shares for N256.5 million, while UBA exchanged 20.3 million equities valued at N123.5 million.

On the price movement log, Nestle Nigeria topped the risers’ chart after adding N50 to its share price to close at N1450 per unit.

Seplat gained N29.90k to finish at N549.90k per share, while Dangote Cement rose by N9.60k to end at N201.60k per share.

MTN Nigeria appreciated by N2.55k to settle at N132.55k per unit, while Nigerian Breweries increased by N2 to close at N60 per unit.

Conversely, it was a bad day for Flour Mills as its stock price depreciated by 40 kobo to close at N13.35k per unit, leading the decliners’ chart at the close of business on Tuesday.

PZ Cussons followed with a price depreciation of 40 kobo also to finish at N8.10k per share, while Eterna dropped 35 kobo to settle at N3.65k per unit.

NAHCO lost 12 kobo to end at N3.18k per share, while Africa Prudential suffered 4 kobo loss to finish at N3.56k per unit.

The market is on a break today as a result of the public holiday declared by federal government for the inauguration of President Muhammadu Buhari for a second term of four years in office.

https://businesspost.ng/2019/05/29/stock-market-gains-n490bn-ahead-of-buharis-inauguration/