Nigerian Stock Market Gains Marginally on Friday

• Nigerian Stock Market Gains Marginally on Friday

The Nigerian Stock Exchange (NSE) gained slightly on Friday for the first time in a week following months of a bearish trend.

The NSE All-Share Index rose by just 0.20 percent from the 27,864.49 basis points recorded on Thursday to 27,919.50 on Friday.

While market capitalisation of listed equities ticked up to N13.606 trillion on from N13.580 trillion, representing an increase of N26 billion.

A total of 274 million shares valued at N2.8 billion were traded in 2,966 deals.

Forte Oil led gainers with 9.81 percent, followed by Access Bank 6.67 percent. Flour Mill, Nigerian Breweries, and MTN Nigeria gained 2.86 percent, 1.72 percent and 0.79 percent, respectively.

Fidson Healthcare Plc (FIDSON) and Cement Co. of North Nig Plc  (CCNN) top losers’ chart with 9.89 percent and 8.05 percent, respectively.

Weak sentiment continues to dictate market direction in the third quarter and it is projected to continue until President Buhari form an economic team with a clear growth path.

Chief Patrick Ezeagu, ASHON Chairman, however, said there is nothing unusual about the current bearish trend as the stock market generally mirror economic growth.

He stated that “those who are selling off their shares right now are speculators and not real investors. Every stock market needs speculators for liquidity but they can change investment decision in one second.

“Our stock market is forward looking. Investors need not be nervous. They should consult professional stockbrokers for sound investment decision. There is no basis for panic sale of shares. Many companies have announced strong financial performance with prospects of increased future earnings. Why should a shareholder of such a company embark on panic sale of shares?

“Globally, stock market gauges the mood of the economy like a barometer. Our market is not a local one. Foreign investors have significant stakes because their analysis has always convinced them that our market has potential for strong Return on Investment (RoI).

“At the moment, core investors are awaiting a couple of things, including announcement of ministers and the Economic Team to show the clear direction of the government.

“These are issues that are beyond the board and management of the Exchange but have dire consequences on investment decisions. The bearish trend has to do with the fact that the government is yet to settle down after the elections. However, astute and professionally guided investors should take position now that most stocks are trading lower than their net realisable asset value and expect handsome returns when the market shall eventually rally.

“A mere study of most of the companys’ performance figures is most informative and points in the direction of a market that will definitely rally as soon as the economic team of government is in place,” Ezeagu said.