Major Blue Chip companies on the Nigerian Stock Exchange (NSE) on Wednesday posted huge gains reversing the negative trend with the equity market appreciating by N295 billion.
The market capitalisation rose by N295 billion or 3.18 per cent to close at N9.579 trillion compared with N9.284 trillion achieved on Tuesday.
Also, the All-Share Index which opened at 27,034.05 improved by 857.91 points or 3.17 per cent to close at 27,891.96.
Market analysts attributed the market rally to increased confidence of investors in anticipation of the new foreign exchange policy guidelines to be released by the Central Bank of Nigeria (CBN).
They said that investors increased their stake in banking shares ahead of the release of the guidelines aimed at attracting foreign investors.
The market analysts explained that domestic investors embraced banking stocks with expectation that the new policy would help generate foreign currency business, which had dried up under current currency policy.
Dangote Cement led the gainers’ table, growing by N8.20 to close at N172.20 per share.
Mobil Oil came second with a gain of N7.99 to close at N169.50, while Nigerian Breweries increased by N5.75 to close at N133.75 per share.
Guinness gained N4.90 to close at N102.90 and Guaranty Trust Bank grew by N1.44 to close at N19.95 per share.
Conversely, GlaxosmithKline topped the losers’ chart, dropping by 80k to close at N15.64 per share.
Ecobank Transnational Incorporated also lost 80k to close at N16.40, while International Breweries dropped by 42k to close at N19.48 per share.
Flour Mills declined by 35k to close at N21.50 and UPL shed 22k to close at N4.19 per share.
Similarly, the volume of shares traded increased by 244.74 per cent as investors staked N3.48 billion on 588.43 million shares transacted in 5,088 deals.
This was in contrast with a total of 170.69 million shares valued at N2.42 billion exchanged in 3,153 deals on Tuesday.
The banking stocks were the toast of investors with United Bank for Africa emerging the most traded, accounting for 197.20 million shares worth N865.52 million.
It was trailed by Skye Bank with 74.55 million shares valued at N87.98 million, while FCMB Group traded 54.49 million shares worth N89.91 million.
Also, FBN Holdings traded 38.74 million shares valued at N154.74 million.
