Business
Equities break downtrend with N12bn gain
After three consecutive negative trading sessions, Nigerian equities recorded their first gain of the week on Thursday as bargain-hunting for value stocks halted the week-long decline and added N12 billion to market value of quoted equities.
The All Share Index (ASI), the common index that tracks prices at the Nigerian Stock Exchange (NSE), indicated a modest gain of 0.13 per cent to close at 25,936.24 points as against its opening index of 25,903.55 points.
Aggregate market value of all quoted equities also rose from N8.927 trillion to close at N8.939 trillion, representing net capital gain of N12 billion. The modest rally improved the negative average year-to-date return to -3.49 per cent.
Sectoral indices showed widespread buying sentiment as investors sought to lock into stocks that had been depreciated in the previous trading sessions.
The NSE Banking Index rose by 0.9 per cent. The NSE Insurance Index appreciated by 0.6 per cent. The NSE Consumer Goods Index inched up by 0.02 per cent while the NSE Industrial Goods Index closed flat. However, the NSE Oil & Gas Index declined by 1.6 per cent.
Guinness Nigeria led the 20 gainers with a gain of N2.58 to close at N63.53. Mobil Oil Nigeria followed with a gain of 99 kobo to close at N275.99. Stanbic IBTC Holdingss rose by 50 kobo to N17.80. Unilever Nigeria added 27 kobo to close at N34 while Oando rose by 22 kobo to close at N4.78.
Read Also: Desperate to boost Naira, CBN to push out more Dollars
Total turnover stood at 354.50 million shares valued at N1.72 billion in 2,760 deals. The three most active stocks were Continental Reinsurance, with 203.41 million shares; Staco, 20 million shares and Zenith Bank, which recorded turnover of 18.67 million shares.
On the downside, Total Nigeria led the losers with a loss of N10 to close at N268. Forte Oil followed with a drop of N6.59 to close at N61.07 while UAC of Nigeria declined by 51 kobo to close at N15.99.
“Today’s market performance was largely attributable to bargain hunters’ interest in banking stocks. We expect market to close positive tomorrow considering the cheap valuation of stocks that had declined in prior trading sessions this week. However, we expect market to close the week lower,” Afrinvest Securities stated.
“While sentiments turned positive at today`s close due to bargain hunting after three consecutive losses, we are of the view that weak sentiments based on the unimpressive results so far released may subdue market mood at week close tomorrow,” SCM Capital stated in a post-trading note.
RipplesNigeria ….without borders, without fears
Click here to download the Ripples Nigeria App for latest updates
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...
Roland Uchendu Pele
February 3, 2017 at 10:17 am
“We expect market to close positive tomorrow considering the cheap valuation of stocks that had declined in prior trading sessions this week.”
This is the mistake we all make even in our respective economic and budget plannings. We like to expect things to be better, but they just get worse.
Balarabe musa
February 3, 2017 at 2:18 pm
So what are you saying, even you yourself do expect things to get better, so do you want the stock market to say they are expecting the worst tomorrow?
As we are getting our forex policy right, then surely stock exchange will witness positive changes.
chichi emerue
February 3, 2017 at 11:07 pm
Yes that is if it will get better because our stock exchange is getting worst and i don’t think anything positive will come out of it
Johnson Amadi
February 3, 2017 at 10:42 am
“Total Nigeria led the losers,” this writer’s choice of word here is evil! ? There are losers, while Total Nigeria is the king of all losers. That got me laughing. On the serious side, I think the NSE this time is quite encouraging, but, still needs stability.
Margret Dickson
February 3, 2017 at 10:44 am
After the fall of Guinness Nigeria during the festive season, they seem to be climbing up gradually. They must have put in place other means of increasing their business to attract more people they failed to attract towards the end of 2016.
JOHNSON PETER
February 3, 2017 at 10:58 am
Why are the petrol dealers having losses , this must be as a result of imminent fuel hike.
seyi jelili
February 3, 2017 at 2:56 pm
It is not imminent anymore. Petrol is sold here for #150 in ogun state. Even to get it, you will have to stand a long queue. So fuel pump price is hiked already.
Joy Madu
February 3, 2017 at 11:00 pm
Yes but we need our government to reduce the price rate. that is if they will