The equities market has appreciated highest in 11 months, driven by gains in banking and cement shares as investors took advantage of the low valuation for some commercial bank shares.
The market rose by 2.77 per cent to cross 30,197 points, lifted by gains in First Bank Holdings Plc and Dangote Cement Plc. At the close of trading, the year-to-date return settled at 12.80 per cent. There were 39 gainers and 11 losers.
The banking index rose 1.61 percent amid expectations Africa’s biggest economy would exit recession soon as higher oil revenues stabilize the battered naira.
FBN Holdings Plc topped the gainers’ list, advancing by 10 per cent, to close at a year high of N5.83. This was followed by May and Baker Nigeria Plc, Learn Africa Plc, Champion Breweries Plc and Access Bank Plc, which appreciated by 9.40 per cent, 8.11 per cent, 6.99 per cent and 5.53 per cent, accordingly.
However, Linkage Assurance Plc closed the day atop the losers’ chart, declining by 9.52 per cent, to close at N0.57. This was followed by Oando Plc, 7UP Bottling Company Plc, Jaiz Bank Plc and Caverton Offshore Support Group Plc, which declined by 5.33 per cent, 4.99 per cent, 4.21 per cent and 4.17 per cent, respectively.
Stock brokers said foreign investors who were scared off by the threat of another currency devaluation were considering coming back.
“We are beginning to see the positive impact of the stability in the foreign exchange market and coupled with the attractive valuation of most stocks, offshore investors have started looking toward the stock market,” stock broker Austin Egberi said.
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