- Equities Recover With N35b Gain
Nigerian equities snapped a five-day losing streak yesterday as bargain-hunting in the banking and oil and gas sectors rallied the market to a net capital gain of N35 billion.
Benchmark indices at the Nigerian Stock Exchange (NSE) showed average gain of 0.28 per cent, equivalent to net capital gain of N35 billion. The modest gain improved the negative average year-to-date return to -8.65 per cent.
The All Share Index (ASI)- the main value-based index that tracks share prices at the Exchange, rose from its opening index of 34,837.50 points to close at 34,933.68 points. Aggregate market value of all quoted equities also increased from its opening value of N12.718 trillion to close at N12.753 trillion.
The recovery was largely driven by gains recorded by large-cap banking stocks. The NSE Banking Index appreciated by 1.4 per cent. The NSE Oil and Gas Index inched up by 0.3 per cent while the NSE Industrial Goods Index closed flat. However, the NSE Consumer Goods Index dropped by 0.7 per cent while the NSE Insurance Index dipped by 0.3 per cent.
There were 23 gainers to 18 losers. Okomu Oil Palm led the gainers with a gain of N2.40 to close at N79.90. Guaranty Trust Bank followed with a gain of 55 kobo to close at N37.05. FBN Holdings rose by 30 kobo to close at N9.15. Custodian Investment added 24 kobo to close at N5.41. C & I Leasing rose by 22 kobo to close at N2.72 while Nigerian Aviation Handling Company and Oando chalked up 20 kobo each to close at N4 and N5.20 respectively.
On the downside, Nigerian Breweries led the losers with a drop of N2 to close at N93. PZ Cussons Nigeria followed with a loss of N1.50 to close at N13.50. UAC of Nigeria declined by 90 kobo to close at N11.20. Forte Oil lost 85 kobo to close at N19 while Fidson Healthcare declined by 60 kobo to close at N5.40 per share.
Total turnover stood at 240.46 million shares valued at N3.61 billion in 3,400 deals. United Bank for Africa was the most active stock with a turnover of 54.44 million shares worth N436.03 million. Access Bank followed with 38.45 million shares worth N359.44 million while Stanbic IBTC Holdings placed third with 35.23 million shares worth N1.68 billion.
Market pundits remained cautious on the outlook for the equities market. “Due to market sentiments today (Tuesday), we expect bargain hunting to be sustained in tomorrow (Wednesday)’s trading session. Nonetheless, we maintain a bearish outlook for the market in the near term,” Afrinvest Securities stated.
SCM Capital stated that it maintains its conservative outlook for the market, due to the absence of a positive catalyst amidst political uncertainty as the 2019 electoral cycle draws nearer.
