Equities Rebound After five-day Losing Streak

• Equities Rebound After five-day Losing Streak

The Nigerian equities market rebounded from a five-day losing streak on Wednesday as the All-Share Index rose by 0.6 per cent to close at 35,609.07 basis points.

The year-to-date return advanced to 32.5 per cent as 281.836 million shares worth N5.424bn exchanged hands in 4,066 deals.

Investors gained N70.7bn as the Nigerian Stock Exchange market capitalisation settled at N12.3tn.

“The major drivers were Dangote Cement Plc, Zenith Bank Plc, Nigerian Breweries Plc and Guinness Nigeria Plc, which respectively appreciated by one per cent, 2.9 per cent, 1.4 per cent and 10.2 per cent,” analysts at Afrinvest Securities said in a post.

Similarly, to activity level improved as volume and value traded rose by 22.5 per cent and by 13.6 per cent to 281.8 million units and N5.4bn, respectively.

The sector performances were mixed as three of five indices closed positive. The oil/gas index led sector gainers, up by 1.3 per cent as a result of bargain-hunting in Seplat Petroleum Development Company Plc, which appreciated by 3.4 per cent.

In the same vein, buy interests in Nigerian Breweries, Guinness, Zenith Bank and Stanbic IBTC Holdings Plc buoyed the consumer goods and banking indices by 0.8 per cent and 0.1 per cent, respectively.

However, despite an uptick in Dangote Cement by one per cent, the industrial goods index closed 0.5 per cent lower due to losses in Lafarge Africa Plc, which declined by 2.5 per cent.

Likewise, the insurance index fell by 0.4 per cent on account of price depreciation in Custodian and Allied Plc and Linkage Assurance Plc, which depreciated by 2.8 per cent and 4.5 per cent.

Investor sentiment remained soft as market breadth stayed flat after 22 stocks advanced against 23 decliners.

“While Wednesday’s performance comes in positive, the relatively soft market breadth suggests investors are still taking profit. Hence, we are of the view that the equities market may trade sideways in the short term,” the Afrinvest analysts added.

Meanwhile, the open buy-back and overnight rates closed lower at 10.33 per cent and 11 per cent, respectively at the end of trading on Wednesday, reflecting declines of 1.84 per cent and 1.67 per cent accordingly. Consequently, average money market rate settled at 10.67 per cent.

Contrary to Tuesday, bullish sentiments dominated the treasury bills space at the close of trading, as the average reasury bills yield declined by 1.29 per cent to close at 18.87 per cent. Yield declines were recorded on all tenors.

In line with the performance in the treasury bills space; buy pressures prevailed in the treasury bonds market as 12 instruments declined, while all others traded flat. The average bond yield pared by 12 basis points to settle at 15.74 per cent. The May-2018 bond was the most attractive, as it recorded a 0.61 per cent yield decline.