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Huge trading on Dangote Cement drives up market turnover

By The Rainbow
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Activities were on the up side at the Nigerian Stock Exchange on Tuesday  as the All-Share-Index (NSEASI) advanced by 0.62% bringing YtD return to 31.94%.

Market breadth tilted towards the leaders as 35 stocks appreciated against 24 stocks which depreciated.

Volume of transactions also jumped by 19.38 per cent driven by Dangote Cement Plc.

Market turnover rose by 94.95% with DANGCEM contributing 43% of the total value traded.

Other significant contributors to the day's activities on the floor of the NSE are  from banking and consumer goods sectors, such as NESTLE and GUARANTY .

All NSE indices faced the north save for the Oil and gas index which lost 1.41%. The consumer goods sector led the gains appreciating with 1.49% driven by NESTLE (1.90%) and GUINNESS (0.72%).

TRANSCORP released its FY:2012 results recording 4.72% and 56.88% y-o-y decline in turnover and PAT respectively; the counter lost 7.75% today. COURTVILLE which has significantly rallied in the month (+70%) also lost 9.57% and closed the day on offer . NNFM however topped the gainers’ table with 9.97% .

Meanwhile the fixed income financial market was essentially liquid, with the influence the recent allocations from the Federation Account strong on the market, coupled with the fact that banks are yet to pay for their foreign exchange purchases from the official window, Whole Sale Dutch Auction System (WDAS).

NIBOR trended southwards by an average of 3.68% across tenors. We expect rates to go up as  banks settle their WDAS purchases tomorrow.

T-Bills rates were relatively flat for all tenors, except for few investors’ interest in the 1M, 3M and 6M tenors as these rates declined marginally by 0.02% on the average.  We expect yields to trend within this region (Av. 11.5%) within the week given that the MPR was retained at 12%.

Exchange rate appreciated marginally by 0.03% relative to the previous close. We suspect moderation in dollar demand pressure at the interbank; thus, Naira closed the day at NGN/USD158.20 against the previous close of NGN/USD158.25.