Africa Business News Tue, 27 Jul 2021

Nigerian stocks climb further but partial profit-taking dampens gains

Nigerian stocks rose 0.47 percent on Monday, further stretching a string of gains that commenced last Thursday, but with profit-taking in the shares of United Capital and Africa Prudential slowing the pace of gain.

The uptrend derived support principally from a jump in the valuation of UACN, Ardova, Airtel, and Access Bank on a day the issuing of a couple of impressive earnings reports did little to transform trade.

Much as there is great expectation of more corporate reports, investors will be paying attention to the ongoing meeting of the central bank’s monetary policy committee due on Tuesday.

The panel will likely avoid taking extreme positions of cutting rate or raising it and go the way of retention to allow Africa’s largest economy to slow down inflationary pressure steadily at the same time allowing growth to be gradual.

A rate cut often frees up investors' cash into the stock market, aiding a rise in share price, while an upward review usually depresses share value.

Positive market breadth was reported as there were 29 gainers against 16 losers.

The all-share index expanded 181.18 basis points to 38,849.08, and market capitalization to N20.241 trillion.

Year to date, the index is down by 3.53 percent.

Oando led the gainers, appreciating by 9.82 percent to close at N4.36. FTN Cocoa went up by 9.76 per cent to N0.45. Ardova rose to N17.45, notching up 9.75 per cent in the process.

BOC Gases added 9.75 per cent to end trade at N8.45. Livestock completed the top 5, climbing by 9.64 per cent to N2.16.

Universal Insurance was the worst-performing stock, declining by 9.09 per cent to close at N0.20. Linkage Assurance shed 7.14 per cent to close at N0.65.

Sovereign Trust fell to N0.27, losing 6.90 per cent. Africa Prudential slumped to N6.45, recording a 6.52 per cent decline. Regal Insurance closed at N0.45, going down by 6.25 per cent.

Fidelity Bank was the most active stock with 30.544 million shares worth N73.766 million traded in 132 deals. Access traded 14.714 million shares priced at N136.722 million in 238 transactions. UBA had 13.844 million shares valued at N108.646 million traded in 210 deals.

GTCO traded 12.761 million shares estimated at N378.319 million in 261 transactions. Wema traded 11.265 million shares valued at N9.806 million in 62 deals.
Source: mynigeria.com