The Tide source reports that market index rose by 572.72 points or 1.31 per cent to close at 44,306.48 against 43,733.76 last Friday at the Nigeria Stock Exchange.
Also, the market capitalisation which opened at N15.691 trillion inched N191 billion to close at N15.882 trillion.
According to our source, the market performance was contrary to market analysts’ expectations having predicted that the market would nosedive due to month-end portfolio rebalancing.
An analysis of the price movement table showed that the market growth was driven by Dangote Cement gaining N7.90 to close at N268 per share.
Stanbic IBTC followed with N1 to close at N45, while UACN added 60k to close at N17.60 per share.
Forte Oil grew by 60k to close at N50, while Eterna Oil increased by 43k to close at N5.89 per share.
On the other hand, Guinness topped the losers’ chart with a loss of N2 to close at N110 per share.
Nigerian Breweries trailed with N1.80 loss to close at N150, while Dangote Sugar Refinery shed N1 to close at N20.95 per share.
Flour Mills was down by 50k to close at N30.90, while Guaranty Trust Bank declined by 30k to close at N48.70 per share.
However, the volume of shares traded dropped by 39.32 per cent with an exchange of 573.35 million shares valued at N5.88 billion achieved in 6,756 deals.
This was in contrast with 944.86 million shares worth N7.13 billion transacted in 8,166 deals on Friday.
FCMB Group drove the activity chart, trading 169.12 million shares worth N547.03 million.
Access Bank followed with an account of 42.53 million shares valued at N553.48 million, while United Bank for Africa traded 39.52 million shares worth N513.68 million.
Honey Well Flour exchanged 33.66 million shares valued at N91.50 million, while Zenith International Bank sold 32.84 million shares worth N1.02 billion.
They said it that the new share pricing regime would allow share prices to trade as low as one kobo and boost inflow foreign investments.
The experts, in separate interviews with the newsmen in Lagos, said that the method would also enable investors to categorise stocks on the NSE.
The new pricing method started on Monday, January 29.
Olabisi Onabanjo University, Ago-Iwoye, Ogun State Prof. Sheriffdeen Tella, said that the NSE must of necessity update its pricing method from time to time for trading to be transparent.
He said that for any stock exchange to attract foreigners to participate in its trading and invariably in the economy, it must adhere to global best practices.
Tella said that the method must be well implemented to leave no one in doubt about a particular stock.
The Head of Banking and Finance Department, Nasarawa State University, Keffi, Dr Uche Uwaleke, said that inflation and depreciation of the naira had made the new pricing method imperative.
Uwaleke said that the NSE needed to be in conformity with global best practices in terms of rules and regulations.
He, however, called for proper implementation of the new method to achieve the desired results.
Our source reports that Mr Abimbola Babalola, NSE Head of Market Surveillance and Investigation, said that the new method was “aimed at improving liquidity, narrowing spreads and ensuring that all price-improving transactions had material impact.”
Babalola said the new rules would effectively remove the current rule which placed minimum allowable price for any stock to trade at its nominal value, irrespective of the market forces.
He said that as a result, stocks would be under new groupings and pricing rules and that price of every share listed on the NSE would be determined by market forces.
According to him, Group A, shall consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above.
Group B, shall consist of medium-priced equities that are priced at N5 per share or above, but less than N100 per share for at least four of the last six months, or new security listings priced at N5 per share or above at the time of listing.