Banking Stocks Rebound as Equities Appreciate Marginally

• Banking Stocks Rebound as Equities Appreciate Marginally

The Nigerian equities market closed on a positive note on Wednesday, albeit marginally, as banking stocks recorded a quick rebound.

Stocks, thus, extended gains from the previous session as the All-Share Index rose by 0.02 per cent to close at 42,158.32 basis points from 42,148.40 basis points.

A total of 570.259 million shares worth N5.326bn exchanged hands in 5,794 deals.

The year-to-date return maintained a flat close at 10.2 per cent as investors gained N3.6bn with equities market capitalisation rising to N15.129tn from N15.125tn.

The Wednesday’s positive performance was on the back of a rebound in banking stocks- as Guaranty Trust Bank Plc, Zenith Bank Plc and United Bank for Africa Plc appreciated respectively by 1.6 per cent, 1.5 per cent and 3.3 per cent.

In the same vein, activity level strengthened as volume and value traded rose by 11.8 per cent and 15 per cent to 570.259 million units and N5.326bn, respectively.

Sector performance was mixed as two of the five major indices trended northwards, while three slumped. The banking and insurance indices advanced by 1.1 per cent and 0.7 per cent, respectively due to gains in GTBank, Zenith Bank, Continental Reinsurance Plc and Prestige Assurance Company Plc by 1.6 per cent, 1.5 per cent, 0.1 per cent and 0.02 per cent, accordingly.

However, the oil/gas index declined the most, shedding 1.2 per cent as investors sold off positions in Conoil Plc and 11 Plc (Mobil), which dropped respectively by 9.6 per cent and 4.5 per cent.

The consumer and industrial goods indices followed, depreciating by 0.9 per cent apiece, following price drops in Nestle Nigeria Plc, Nigerian Breweries Plc, Lafarge Africa Plc and Cement Company of Northern Nigeria Plc, which shed 0.7 per cent, 2.7 per cent, 1.8 per cent and 4.3 per cent, accordingly.

Thus, investor sentiment improved compared to Tuesday as 27 stocks advanced against 30 losers.

The top performing stocks were Japaul Oil and Maritime Services Plc, Champion Breweries Plc and Continental Reinsurance Plc, which appreciated respectively by 5.7 per cent, 4.8 per cent and 1.6 per cent.

On the flip side, the worst performers were Conoil, Unic Diversified Holdings Plc and Fidelity Bank Plc, which plummeted by 9.6 per cent, 6.2 per cent and 5.7 per cent, respectively.

Commenting on the state of the market, Afrinvest analysts said, “Despite the marginal gain, the improvement in sentiment shows the market is gradually stabilising. Thus, we expect performance in subsequent trading sessions to remain positive.”

Also commenting, analysts at FSDH Research said, “Market outlook remained positive with the possibility of a rebound as investors take advantage of low valuations.”