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NSE Market Capitalisation Hits 2008 Peak

By on June 6, 2013

A three-day rally by the bulls saw the market capitalisation of the Nigerian Stock Exchange (NSE) hit its 2008 peak of N12.6 trillion yesterday just as year-to-date growth of the NSE All-Share Index stood at 40.5 per cent.

Dangote Cement Plc, which accounts for 28 per cent of the NSE capitalisation, was a major driver of the growth that pushed the market to its pre-meltdown level.

Since the resumption of trading this week, shares have remained on the upswing following renewed demand by institutional investors who have found blue chip stocks irresistible.

Trading had resumed on Monday with a marginal growth of 0.07 per cent, which improved to a growth of 1.7 per cent on Tuesday. The bulls consolidated their hold on the market Wednesday with the NSE All-Share Index jumping by 2.5 per cent to close at 39,453.23.

Market capitalisation gained N309 billion to close at N12.605 trillion, the peak of 2008 boom days. Although many blue chips have been witnessing growth in the past few days, an analysis of the growth indicated that Dangote Cement was the major driver.

For instance, yesterday when the market gained N309 billion to hit N12.6 trillion, Dangote Cement accounted for N233 billion or 75 per cent. The stock recorded the highest price gain of N13.74 to close at N210 per share.

Market operators said demand for the shares of companies in the Dangote Group increased since the announcement that Aliko Dangote remained the richest man in Africa and has climbed to the position of 25th richest man in the world.

Apart from Dangote Cement that led the price gainers yesterday, the remaining three firms in the Dangote Group, namely, Dangote Sugar Refinery, Dangote Flour Mills Plc and National Salt Company of Nigeria Plc, also appreciated in prices.

In all, 39 stocks appreciated in value compared with 24 that depreciated. Volume and value of trading also witnessed growth as investors traded 442.892 million shares valued at N5.575 billion exchanged in 6,595 deals, up from 347.134 million shares valued at N4.745 billion traded the previous day.

(THIS DAY)