Nigerian equities gain N546b in dividend rally

Nigerian equities sustained an all-week rally last week as dividend recommendations tickled a scramble for quoted equities. Key indices at the Nigerian Stock Exchange (NSE) showed the stock market with its biggest rally so far this year, with a week-on-week gain of 6.57 per cent, equivalent to a gain of N546 billion.

With more advancers than decliners, the market showed widespread gains across the sectors as investors sought to lock in into equities with prospects for high dividend yields. The momentum of trading was boosted by dividend recommendations by three companies, especially the N136.3 billion dividend announcement by Dangote Cement Plc.

The board of Dangote Cement said shareholders would receive a dividend per share of N8. Africa Prudential Registrars also announced a dividend per share of 43 kobo. Greif Nigeria Plc also declared a dividend per share of 60 kobo during the week.

The dividend recommendations and expectations that other companies might announce their results and dividends quickened investors’ appetite. Aggregate market value of all quoted equities rose from the week’s opening value of N8.336 trillion to close at N8.882 trillion, representing a gain of N546 billion.

The benchmark index for the Nigerian stock market, the All Share Index (ASI), rallied to close at 25,820.10 points as against its week’s opening index of 24,228.79 points, indicating a week-on-week gain of 6.57 per cent.