Banking Stocks Drive N17bn Gain on Equities

• Banking Stocks Drive N17bn Gain on Equities

Financial services (banking) stock, on Thursday, led the Nigerian Stock Exchange into a N17bn gain at the close of trading.

A total of 146.485 million shares worth N1.187bn exchanged hands in 3,013 deals.

The NSE market capitalisation appreciated to N9.045tn from N9.028tn, as the All-Share Index closed at 26,289.95 basis points from 26,240.45 basis points.

The bourse posted another positive close in Thursday’s session buoyed by late gains in the banking sector. Major bourses around the world traded firmly in the green following sustained confidence that President Trump’s policies would spur economic growth.

The banking sector rebounded after three consecutive sessions of losses owing to gains in Guaranty Trust Bank Plc and Zenith Bank Plc by 2.55 per cent and 0.98 per cent, respectively.

The oil and gas sector also closed higher after gains in Forte Oil Plc and Oando Plc by 10.25 per cent and 4.88 per cent, accordingly, outweighed declines in MRS Plc, Conoil Plc, Mobil Oil Nigeria Plc and Total Nigeria Plc by 9.74 per cent, 4.90 per cent, 4.94 per cent and 0.70 per cent, respectively.

While the industrial goods sector remained relatively unchanged, the consumer goods sector traded in the negative territory amid investors’ reaction to Guinness Nigeria Plc disappointing second half 2016 result. Guinness shares depreciated by five per cent coupled with losses in Nestle Nigeria Plc and Honeywell Flour Mill Plc by 1.33 per cent and 0.87 per cent, accordingly.

Market breadth remained positive with 24 advances and 19 declines.

On what would shape the next trading session, Vetiva Capital analysts, said, “Similar to the previous session, the positive close of the NSE ASI does not properly reflect the bearish sentiment that dominated Thursday’s trading hours. As such, we think the performance of the ASI could soften at week close.”

Meanwhile, the average bond yield advanced to 16.82 per cent, as the naira appreciated slightly.

The average money market rates at the close of trading activities stood at 5.88 per cent indicating a decline of 0.84 per cent from the average rate at Wednesday’s closing. The open buy-back and overnight rates settled at 5.50 per cent and 6.25 per cent, respectively.

In the secondary market for Treasury bills, weakened demand was witnessed across all tenors as yields trended northward on January 25, 2017 pegging the average Treasury bill yield for the day at 16.51 per cent. The one-month bill recorded the highest yield increase of 0.28 per cent.

Mixed sentiments pervaded the Federal Government bonds market. However, majority of the instruments recorded advancements in yield. The yields of the May-2018 and March-2024 bonds advanced significantly by 0.19 per cent and 0.22 per cent, accordingly. At the close of the day’s trades, average bond yield inched up marginally by 0.02 per cent to 16.82 per cent.

At the interbank foreign exchange market, the naira appreciated slightly by 0.08 per cent to close at N305.25 to the United States dollar. Also, the average forward quotes recorded in the day fell to N323.27/dollar. Parallel market rates, however, remained flat at N490/dollar.