Bolstered by positive reactions by investors to impressive financial results of some companies yesterday, the Nigerian Stock Exchange (NSE) All-Share Index climbed to a five-year high of 36,400.16.
The last time the benchmark index hit that level was November 2008. But a three-day market rally, which began on Tuesday, lifted the index to close at 36,400.16 while the market capitalisation stood at N11.636 trillion.
Market operators said the market had sustained a bull rally for three consecutive days because demand for equities had remained high in a harvest season where shareholders are getting billions of naira in dividends for the 2012 financial year.
“Given the first quarter results, which are equally impressive, some investors are reinvesting part of their dividend for the 2012 year. This, coupled with the general positive outlook, has kept demand for equities high,” Mike Ezeh of Crane Securities Limited said.
The three-day bull run has led to a growth of N142 billion in market capitalisation of the exchange.
A total of 42 stocks appreciated in price yesterday while 22 dropped. Cadbury Nigeria Plc which reported a growth of 184 per cent in profit for the first quarter ended March 31, 2013, was among the price gainers. The stock rose by N1.99 to close at N44.00 per share.
However, CAP Plc led the price gainers’ table with N3.02, trailed by Okomu Oil Palm Plc with N2.92. International Breweries Plc, Glaxosmithkline Consumer Plc, Nigerian Breweries Plc, and National Salt Company of Nigeria Plc chalked up N2.37, N1.50, 1.47 and N1.03 respectively.
Conversely, Flour Mills of Nigeria Plc led the price losers with N0.65, followed by Mansard Insurance Plc with N0.20. Diamond Bank Plc shed N0.19, just as May & Baker Nigeria Plc and RT. Briscoe Nigeria Plc dropped N0.18 apiece.
Meanwhile, investors traded 380.9 million shares valued N3.533 billion in 5,638 deals. The financial services sector dominated the activity chart with 270.813 million shares valued at N2.069 billion exchanged in 3,089 deals.