UBA dividend sparks Stock Market boom as Investors rake in N369bn gain

The Nigerian stock market kicked off the week with a massive surge, delivering a whopping N369 billion gain to investors as performance indices jumped by 0.56 per cent on Monday. Nigerian e-commerce platforms

The rally came on the heels of United Bank for Africa (UBA)’s blockbuster announcement of a three Naira dividend payout, igniting investor confidence and sending banking stocks soaring.

The Nigerian Exchange Ltd. (NGX) market capitalisation climbed to N66.188 trillion from N65.819 trillion recorded last Friday.

The All-Share Index also skyrocketed by 588.43 points to close at 105,551.39 from 104,962.96 in the previous session.

The dividend revelation from UBA set off a chain reaction, boosting confidence in the banking sector and propelling market breadth to a positive close with 25 gainers against 22 losers.

Royal Exchange surged by 10 per cent to close at 88k, while Livestock Feeds rallied 9.87 per cent to hit N9.24 per share. Abbey Mortgage Bank rose by 9.72 per cent to close at N3.95, Universal Insurance soared by 9.62 per cent to 57k per share, while Sunu Assurance climbed 9.22 per cent to N5.45 per share.

On the flip side, Nem Insurance dipped 9.63 per cent to close at N12.20, while United Capital slumped 9.29 per cent to N16.60 per share. Computer Warehouse Group fell by 6.67 per cent to close at N8.40, DAAR Communications lost 6.06 per cent to close at 62k per share, while Africa Prudential dropped 5.56 per cent to N15.30 per share.

The market recorded a total of 440.52 million shares, worth N10.470 billion, exchanged across 13,314 transactions, a sharp increase from the 397.208 million shares valued at N14.170 billion traded last Friday.

Trading activity was dominated by Zenith Bank, which led the pack with 55.062 million shares worth N2.605 billion. First City Monument Bank followed closely with 49.59 million shares valued at N449.09 million, while United Bank for Africa recorded 47.39 million shares worth N1.835 billion.

Access Corporation traded 37.24 million shares worth N834.092 million, while Fidelity Bank transacted 31.298 million shares valued at N563.89 million.

Reacting to the market rally, Mr David Adonri, Vice President of Highcap Securities Ltd., attributed the bullish trend to renewed confidence in banking stocks.

“Banks had earlier announced a delay in the submission of their financial year results. However, United Bank for Africa released its corporate disclosure, saying it is paying three Naira as final dividend, so that restored investor confidence in that sector.

“The sector is the arrowhead that drives the market. That was the development that propelled the market massively today.” (NAN)