NSE daily report: Dangote Cement Plc powers index to 1.74% gain

The market benchmark index jumped to a 638.65 points gain on Monday, as the most capitalized stock on the Nigerian Stock Exchange was the toast of Investors. Dangote Cement Plc (DANGCEM) had announced the commencement of the first tranche of its share-buy back, and it sent investors scrambling for its shares.

The fact that the company will be buying back the shares at the prevailing market price, will likely force the share price to go as high as possible before the commencement date for the buy-back programme.

The Nigerian Stock Exchange All-Share Index (NSE ASI) and the market capitalization advanced by 1.74%; The NSE ASI settled at 37,443.40 points while the market capitalization gained N333.797 billion to close at N19.570 trillion.

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DANGCEM and 8 other stocks recorded gains above 8.50%, while ETERNA and two other stocks recorded loses above 8.50% on Monday.

Activity level

The activity level was mixed, with the volume of trade increased marginally by 0.17%, while the value of trades decreased by 24.14%. At the end of trading, 427.059 million shares worth N3.309 billion was traded in 5,258 deals.

MANSARD was the most traded stock by volume with 90.181 million shares exchanging hands, followed by JAPAULGOLD and TRANSCORP with 45.455 million and 36.582 million shares respectively were traded.

DANGCEM was the most traded stock by value, accounting for approximately 50% of total value traded on Monday, as 5.502 million shares valued at N1.267 billion exchanged hands in 245 deals.

GUARANTY and ZENITHBANK were the second and third most traded stocks by value with shares worth N372.255 million and N298.093 million respectively.

Performance of indices

Three indices under our watch advanced, while two declined;

• Industrial Goods Index advanced by 5.46% on the back of DANGCEM (+9.98%) and WAPCO (+2.27%)
• Insurance Index advanced by 5.16% following gains in MANSARD (+9.78%), NEM (+9.68%) and LINKASSURE (+8.89%)
• Oil & Gas Index advanced by 0.76%, propelled by OANDO (+9.87%)
• Consumer Goods Index declined by 0.14% , following loses in INTBREW (-2.71%) and UNILEVER (-2.79%)
• Banking Index declined by 1.05% as ZENITH (-2.02%), GUARANTY (-0.74%) and ACCESS (-1.17%) all declined

Investor Sentiment

Investors sentiment as measured by market breadth (advance/decline ratio) weakened to 1.0x from the 4.4x recorded in the previous session as 22 stocks gained while 23 stocks declined.

Top five gainers by percentage are;

1. BOCGAS gained by 10.00% to close at N7.92
2. DANGCEM gained 9.98% to close at N230.40
3. OANDO gained 9.87% to close at N3.45
4. MANSARD gained 9.78% to close at N1.01
5. FTNCOCOA gained 9.68% to close at N0.68

Top five losers by percentage are;

1. ETERNA lost 9.89% to close at N4.10
2. TRANSEXPR lost 9.20% to close at N0.79
3. CHAMS lost 8.70% to close at N0.21
4. ARDOVA lost 5.24% to close at N13.55
5. UNITYBNK lost 4.48% to close N0.64

Outlook

We cautious about the market direction as the second wave of the Covid-19 pandemic and its antecedents, however we expect the positive performance to continue in subsequent trading days.

By; Nnamdi M.