High-cap stocks lead equities to marginal recovery

Nigerian equities rode on the back of gains by highly capitalised stocks to stage a marginal recovery on Tuesday.

While there were more decliners than advancers, benchmark indices showed a modest gain of 0.04 per cent, equivalent to net capital gain of N6 billion.

The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE) inched up by 0.04 per cent to close at 43,073.45 points as against the opening index of 43,056.51 points. Aggregate market value of all quoted equities also increased slightly from its opening value of N15.403 trillion to close at N15.409 trillion. The average year-to-date return rose slightly to 12.63 per cent.

With 39 decliners against 26 advancers, the positive overall market position was due mainly to gains recorded by highly capitalised stocks such as Dangote Cement, Cadbury Nigeria, Flour Mills of Nigeria, Guinness Nigeria and Nestle Nigeria.

Sectoral indices showed mixed performance. The NSE Insurance Index rose by 1.3 per cent. The NSE Oil & Gas Index appreciated by 0.9 per cent while the NSE Industrial Goods Index inched up by 0.7 per cent. However, the NSE Banking Index declined by 0.8 per cent while the NSE Consumer Goods Index dipped by 0.4 per cent.

Total turnover stood at 407.9 million shares valued at N6 billion in 5,247 deals. Zenith Bank was the most active stock with a turnover of 70.26 million shares valued at N2.19 billion. FBN Holdings followed with a turnover of 53.02 million shares worth N605.31 million while AXA Mansard Insurance placed third with 50.36million shares valued at N137.48 million.

 

Read also: NSE RoundUp! Nigerian equities trend with global markets with N104bn gain

Nigeria’s highest-priced stock- Nestle Nigeria led the advancers with a gain of N20 to close at N1,400. 11, formerly Mobil Oil Nigeria, rose by N8.70 to close at N183.70 while Dangote Cement-the most capitalised quoted company appreciated by N3.40 to close at N268.40.

On the downside, Unilever Nigeria led the decliners with a loss of N3 to close at N57.80. GlaxoSmithKline Consumer Nigeria dropped by N1.10 to close at N20.90 while Dangote Sugar Refinery declined by N1.05 to close at N22.30 per share.

“Although performance was largely flattish, we expect investors’ reactions to full-year 2017 earnings to drive market performance in the near term,” Afrinvest Securities stated.

“Our theme for equities remains positive, as more fourth quarterc2017 corporate earnings – which are expected to be positive – trickle in,” analysts at Cordros Capital stated.

 

 

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