Equities Rally N75b Gain Amid Bargain-hunting

• Equities Rally N75b Gain Amid Bargain-hunting

Nigerian equities traded mostly at higher prices yesterday as increasing bargain-hunting for value stocks drove the overall market to a net capital gain of N75 billion. With more than two gainers for every loser, quoted equities showed considerable recovery, sustaining underlying positive sentiment that started the week.

The benchmark index at the Nigerian Stock Exchange (NSE)- the All Share Index (ASI), recorded average gain of 0.58 per cent to close at 35,516.21 points as against its opening index of 35,311.36 points. Aggregate market value of all quoted equities rose from its opening value of N12.891 trillion to close at N12.966 trillion, representing net capital gain of N75 billion. The rally moderated the negative average year-to-date return to -7.13 per cent.

With 33 gainers to 16 losers, most sectoral indices closed positive, showing the widespread positive sentiment across the sectors and stocks’ groups. The NSE Banking Index rose by 1.7 per cent. The NSE Oil & Gas Index appreciated by 0.7 per cent. The NSE Consumer Goods Index rose by 0.3 per cent while the NSE Industrial Goods Index inched up by 0.02 per cent. However, the NSE Insurance Index slipped by 0.2 per cent.

The momentum of activities also improved considerably as turnover volume and value rose by 93.3 per cent and 180 per cent respectively. Investors traded a total of 339.68 million shares valued at N5.50 billion in 3,394 deals. Hallmark Insurance was the most active stock with 99.95 million shares valued at N30.99 million. Stanbic IBTC Holdings followed with 72.95 million shares worth N3.61 billion while May & Baker Nigeria placed third with 40.09 million shares worth N91.87 million.

“We expect performance to stay upbeat in subsequent sessions as investors hunt for bargains,” Afrinvest Securities stated.

Total Nigeria led the gainers’ chart with a gain of N9 to close at N190. Flour Mills of Nigeria followed with a gain of N1.20 to close at N24.80. Guaranty Trust Bank rose by N1 to close at N39. PZ Cussons Nigeria appreciated by 95 kobo to close at N14. Dangote Sugar Refinery added 50 kobo to close at N15.50 while Access Bank, Africa Prudential and Union Bank of Nigeria rose by 25 kobo each to close at N9.30, N4 and N5.85 respectively.

On the negative side, GlaxoSmithKline Consumer Nigeria led the losers with a loss of N1 to close at N14. Ecobank Transnational Incorporated and Forte Oil followed with a drop of 70 kobo each to close at N19.30 and N22.30 respectively. Nigerian Breweries declined by 50 kobo to close at N100. Custodian Investments slipped by 35 kobo to close at N5.10 while Dangote Flour Mills dropped by 30 kobo to close at N7.85 per share.

Analysts at SCM Capital remained cautious on the outlook for the market in the short term. “In the interim, we maintain our conservative outlook, underpinned by continued apathy towards the market as the 2019 electoral cycle draws nearer amid sustained capital flow reversals in emerging and frontier markets,” SCM Capital stated.