Home Business Subsidy removal: Nigerian equity market appreciates further by 2.23%

Subsidy removal: Nigerian equity market appreciates further by 2.23%


Lagos  –   Activities on the Nigerian Stock Exchange (NSE) on Friday recorded further growth, appreciating by 2.23 per cent following investors renewed confidence in oil and gas stocks.

The positive development was said to be occasioned by the Federal Government’s removal of subsidy.

The News Agency of Nigeria (NAN) reports that the Nigerian equity market rose to its highest level last seen in January.

NAN reports that market capitalisation rose by N198 billion or 2.23 per cent to close at N9.098 trillion compared with N8.900 trillion.

Also, the All-Share Index appreciated by 575.97 points or 2.23 per cent to close at N26,441.03 against N25,865.06 recorded on Thursday.

Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., attributed the growth to the deregulation in oil sector.

Kurfi stated that investors were anticipating that with the deregulation of the import market, fuel retailers would be able to improve margins and boost profitability.

He added that the nation’s equity market was boosted by the news of initial disbursement of 2016 budget.

NAN reports that Nestle led the gainers’ table growing by N42 to close at N722 per share.

Mobil Oil came second with N14.34 to close at N175, while Total inched N10.40 to close at N170 per share.

Seplat increased by N5 to close at N350 and Forte Oil grew by N4.50 to close at N225 per share.

On the other hand, MRS topped the losers’ chart, dropping by N4.36 to close at N40.47 per share.

Nigerian Breweries trailed with a loss of N3.05 to close at N117.95, while Ikeja Hotel dipped 12k to close at N2.45 per share.

Custodian and Allied Insurance shed 9k to close at N3.70 and Gold Breweries lost 4k to close at close at 85k per share.

NAN also reports that the turnover volume of shares traded grew by 116.69 per cent as investors staked N3.58 billion on 567.59 million shares transacted in 5,523 deals.

The Financial Service Sector remained the toast of investors with FBN Holdings emerging the most traded equity, accounting for 107.17 million shares worth N399.16 million.

Transcorp followed with an exchange of 74.12 million shares worth N94.17 million, while Fidelity Bank sold 63.64 million shares valued at N82.002 million.

Wema Bank exchanged a total of N38.49 million shares worth N639.939 million. (NAN)

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