- Stocks Appreciate as UACN Property, Oando Lead Gainers
The Nigerian equities market closed on a positive note on Monday as UACN Property Development Company Plc, Cutix Plc and Oando Plc led the gainers’ table.
The Nigerian Stock Exchange market capitalisation appreciated to N9.025tn from N9.022tn as the All-Share Index closed at 26,231.37 basis points from 26,223.54 basis points.
A total of 228.597 million shares worth N2.579bn were traded in 3,228 deals.
The Nigerian bourse added modest points at week open after a last minute surge in Nigerian Breweries Plc stocks, which lifted the NSE ASI by three basis points above the flat line. Meanwhile, global markets traded mostly lower as investors reacted to protectionist trade remarks by new United States President, Donald Trump, during his inaugural address.
Following a rebound in Oando and Total Nigeria Plc by 3.94 per cent and 2.14 per cent, respectively, the oil/gas sector traded higher in Monday’s session, paring previous session’s loss.
Also, the consumer goods sector shrugged off losses in Honeywell Flour Mill Plc, Nestle Nigeria Plc and Cadbury Nigeria Plc by 4.84 per cent, 3.36 per cent and 1.42 per cent, respectively, to close mildly higher, owing to gains in Guinness Nigeria Plc and Nigerian Breweries by 2.24 per cent and 1.72 per cent, respectively.
While the banking sector finally settled marginally lower after mixed performances in Wema Bank Plc, Diamond Bank Plc , Zenith Bank Plc and Guaranty Trust Bank Plc, the industrial goods sector remained relatively unchanged with Cutix recording 4.4 per cent appreciation, extending its winning streak to four consecutive sessions.
Market breadth remained positive with 19 advances and 16 declines.
On what would shape the next trading session, analysts at Vetiva Capital Management Limited, in the firm’s Monday’s post said, “Despite the positive market breadth, we highlight that the market would have closed lower save for late gains in Nigerian Breweries, as most of the gainers were small cap stocks.
“That said, we believe the market could swing back to the red in the next session as a number of large cap stocks remain pressured.”
Meanwhile, the interbank call rate declined 399 basis points to 6.68 per cent amid a relatively unchanged system liquidity; and at the foreign exchange interbank market, the naira spot rate and one year forward rate remained stable at N305.50 and N378, respectively.
The Treasury bills market traded mixed with a bullish bias as moderations on the short to mid-term of the curve were countered by advances mostly on the long dated maturities. Particularly, yields on the 31 day-to-maturity, 59DTM and 199DTM bills dropped to 15.49 per cent, 12.44 per cent and 18.43 per cent, respectively, while the yields on the 325DTM and 332DTM bills rose to 21.29 per cent and 21.34 per cent, respectively.
Meanwhile, the bond market turned significantly bullish (save for the short end of the space) as yields on the benchmark bonds declined 12 basis points on the average. Notably, yields on the 15.54 per cent FGN February 2020, 14.20 per cent FGN March 2024 and 12.1493 per cent FGN July 2034 bonds moderated 17 basis points, 15 basis points and 16 basis points to settle at 16.50 per cent, 16.09 per cent and 15.97 per cent, respectively.