Home Stock Market NGX records N419bn growth in April

NGX records N419bn growth in April

by Business News Report

The market capitalisation of the Nigerian Stock (NGX) recorded a growth of N419 billion in April due to impressive first quarter results declared by some companies. Specifically, the market capitalisation which closed trading in March at N20.428 trillion rose by N419 billion to close at N20.847 trillion in April. Similarly, the All-Share Index inched higher by 789.29 points to close at 39,834.42 in contrast with 39,045.13 recorded in March. Royal Exchange Assurance emerged the best performing stock for April in percentage terms, growing by 89.29 per cent to close at 58k per share against 28k recorded in March.

Linkage trailed with 41.87 per cent to close at 85k in contrast with 60k posted in the comparative month. Also, Japaul Gold came third with 36.36 per cent growth to close at 60k against 44k achieved in March. Conversely, NCR was the worst performing stock in percentage terms in April with a loss of 18.64 per cent to close at N2.27 against N2.79 it opened with in March. Unity Bank dipped 17.33 per cent to close at 62k from 75k recorded in March. Caverton also dipped 14.98 per cent to close at N1.75 per share compared with N2.07 per share posted in March.

Speaking on the performance of the stock market, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said the 2020 full year and first quarter impressive corporate earnings triggered investors’ buying interest in April. Omordion said the stock market made history in April by halting two months’ downward trend posted in February and March, to confirm the month as position taking period in the nation’s bourse.

Commenting on the First Bank of Nigeria and Honeywell saga, he said the development would be a lesson to other corporates on their insider dealings. On factors that would shape the stock market in May, Omordion said economic fundamentals were still mixed and dicey with expectations of Q1 GDP, April inflation and the outcome of this month’s Monetary Policy Committee meeting.

“We expect a mixed trend and outlook in May. Just as the ongoing vaccination and economic recovery support market recovery in the midst of rising inflation and yields in fixed income space,” he added.

Also speaking, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said the performance of the stock market in April was impressive due to positive Q1 result declared by most companies. “The performance of the stock market for the month of April 2021 is far better than April performance for 2020 when the ASI closed negative in double digit year-to-date. This has to do with positive Q1 results declared by most of the companies and at the same the big four companies that control 50 per cent of the market capitalisation posted gains,” Kurfi said. According to him, the four companies are Dangote Cement, MTNN, BUA Cement and Airtel Africa. (NAN)

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