Investors’ expectations that the rally witnessed in the stock market in 2017 would be sustained this year heightened yesterday, as heavy share price gains recorded by major highly capitalised stocks, especially Dangote Cement and Mobil Oil pushed market capitalisation significantly to N14trillion with N330billion increase when compared to last Friday’s figure.

Specifically, at the close of trading yesterday, market capitalisation of listed equities rose by N330billion or 2.3 per cent from N13.851trillion on Friday to N14.81trillion. Also, the All-share index which measures the performance of listed firms increased by 926.39 points from 38,923.26 to 39,849.65.

The Managing Director, Highcap Securities, David Adonri, attributed the rise in indices to Nigeria’s recovery from recession, declining rate of inflation among others.He, however noted that market reaction to whatever is currently propelling the appreciation will end in due course until another price sensitive information emerges to alter the course of events.

“It started last week as a small cap stocks’ rally, but today, it has developed into a Market wide rally. The volumes transacted have been mind-boggling. Nigerian Breweries alone sold over N12.4million today. The remote factors that propelled the rally may include recovery from recession and declining rate of inflation.

“Positive expectations of good end of year performance by quoted companies may also be a factor but it’s rather early for the Market to start reacting to corporate results. It is also possible that declining interest rate, and rise in the price of crude oil may have caused financial assets to start migrating from fixed income to equities.”

Further breakdown of yesterday’s transactions showed that Dangote Cement and Mobil Oil emerged the day’s highest price gainers with 5.00 kobo each to close at N234.26 and N178.50 per share respectively.

Guinness followed with 4.40 kobo to close at N100 per share. Conoil added 3.01 kobo to close at N32.41 per share. Nigerian Breweries appreciated by 1.90 kobo to close at N140.00 per share.

However, Vitafoam topped the losers’ chart with 0.16 kobo to close at N3.09 per share. Dangote Sugar followed with 0.15 kobo to close at N21.7 per share. C&I Leasing depreciated by 0.07 kobo to close at N1.36 per share. African Prudential lost 0.05 kobo to close at N4.48 per share. NPF Microfinance Bank dropped 0.04 kobo to close at N1.33 per share.

Meanwhile, Union Bank of Nigeria Plc, yesterday, also announced that it successfully raised about N49.7billion through a rights issue, which closed on October 30, 2017 with subscriptions recorded at 120 per cent.According to the bank, the Central Bank of Nigeria (CBN), and Securities and Exchange Commission (SEC), concluded the share allotment and capital clearance review in December 2017.

The Chief Executive Officer of the bank, Emeka Emuwa, said: “The support of our shareholders has been critical to the rebuilding and transformation of Union Bank over the past five years. With 20 per cent oversubscription of the Bank’s Rights Issue, they have once again demonstrated a high level of confidence and support for the bank’s short to medium term strategic priorities.

“Having successfully raised the required capital, we will accelerate the pace of doing business in 2018, as we begin to deploy this fresh capital across identified business areas which will increase our capacity to serve customers better, while also delivering returns to our investors in the short to medium term.”

He added that the new capital will also ensure the bank maintains a strong buffer above regulatory capital adequacy requirements as it drives towards its vision to be Nigeria’s most trusted and reliable banking partner.Union Bank launched the N49.7billion Rights Issue on September 20, 2017 with shares available to shareholders at the ratio of five new ordinary shares for every seven previously held as at August 21, 2017.