Nigerian equities drove away the bears and held on to marginal gains on Tuesday as bargain-hunters sought to lock in into mid and large-cap stocks. Nigerian stock market benchmark index, the All Share Index (ASI), indicated a modest gain of 0.03 per cent.
With 22 gainers to 17 losers, aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) inched up to close at N8.197 trillion from its opening value of N8.194 trillion, indicating a marginal gain of N3 billion. The ASI –a value-based index that tracks prices of all quoted companies, also inched up from its opening index of 23,826.76 points to close at 23,834.87 points.
The average year to date return meanwhile remains negative at -16.78 per cent.
Seplat Petroleum Development Company sustained the lead on the gainers’ list, riding on the back of expected improvements in fundamentals and Monday’s Supreme Court Judgement that overruled objection to its ownership and operatorship of two productive oil blocks. Seplat’s share price rose by N10.19 to close at N214.15 per share. Dangote Cement, NSE’s most capitalised stock, followed on the gainers’ list with a gain of 95 kobo to close at N128.01. Stanbic IBTC Holdings recorded a gain of 40 kobo to close at N14. Ecobank Transnational Incorporated rose by 24 kobo to close at N15 while Ashaka Cement added 20 kobo to close at N25.
Analysts said the positive overall position was due to bargain- hunting transactions across the sectors.
“On the back of the growing macroeconomic concerns as well as the unimpressive corporate releases dragging sentiments, our short term outlook broadly remains pessimistic and as such, we maintain our long term equities investment stance within the Nigerian space. Nevertheless, we recognize short-term bargain hunting opportunities would always surface as valuations remain relatively cheap, thus, active investors could take advantage of the market cycles to deliver alpha,” Afrinvest Securities stated.
Total turnover on Tuesday stood at 313.68 million shares worth N2.41 billion in 3,457 deals. United Bank for Africa was the most active stocks with a turnover of 123.03 million shares worth N339.6 million.
On the other hand, Seven-Up Bottling Company led the losers with a loss of N9.20 to close at N177. GlaxoSmithKline Consumer Nigeria followed with a loss of N1.28 to close at N24.37. Nigerian Breweries declined by 50 kobo to close at N99.50. Guaranty Trust Bank dropped by 40 kobo to close at N16.38 while Flour Mills of Nigeria declined by 13 kobo to close at N18.05 per share.
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