Stock Market in positive start to June

Reports from transactions on the Nigerian Stock Exchange (NSE) on Monday show that the market began the month of June on a positive note.

This comes after equity index provider, MSCI, increased its weight in the country’s frontier market index to 19 per cent from 12 per cent, making it the second-biggest after Kuwait.

As such, the All-Share Index, which opened at 41,474.40, appreciated by 27.61 points, that is 0.07 per cent, to close the day at 41,501.40, hitting a 4-month high.

The index of Nigeria’s top five oil and gas firms climbed to 7.15 per cent, helping the index rise above 40,000 points last seen in January.

Similarly, market capitalisation increased by N9 billion, to close at N13.703 trn against N13.694 trn achieved last Friday.

Forte Oil led the gainers’ table, appreciating by N21.91 to close at N235.79 per share.

Nestle followed, adding, N16.99 to close at N1,089.99, while Seplat added N12.05 to close at N671.00.

However, Dangote Cement led the losers’ chart, dropping N5.50 to end the week at N229.50 per unit.

Guinness was next, losing N4.99 to close at N175.00, while MRS followed dropping N2.57 to close at N48.92 per share.

In all, investors exchanged 418.49 million shares worth N11,54bn  achieved in 6,063 deals on Monday, against the 671.2 million shares valued at N11.872m traded in 5,869 deals on Friday.

Access Bank was investors’ favourite stock by volume, with a turnover of 65.1 million shares worth N651.5m.

First Bank Holdings was next trading 62.2 million shares worth N994.16m, while ETI traded 35.791 million shares valued at N646.19m.

From the money market, reports show that he naira firmed 0.25 per cent against the greenback on Monday, supported by dollar sales from the local units of Chevron, ExxonMobil, Eni and Addax Petroleum, closing at N162.40, compared with Friday’s close of N162.80 to the dollar.

Dealers said the local units of Chevron sold $55.6 million, ExxonMobil $50m, Eni $20m, and Addax sold $10 million to some lenders, increasing dollar liquidity.

Experts predict that additional dollar sales expected from state-owned oil company, NNPC, this week, will continue to strengthen the naira.