High-cap stocks stimulate equities to N70bn rebound

After five days of successive decline, gains by many highly capitalised stocks rallied the Nigerian equities market to a rebound.

Despite broad underlying profit-taking, Nigerian equities on Wednesday posted average gain of 0.58 per cent, equivalent to net capital gain of N70 billion.

With 23 decliners against 22 advancers, the positive overall market situation was driven largely by gains recorded large-cap brewers, cement companies and banks. The rebound stimulated the flagging average year-to-date return to 32.50 per cent.

The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), rose from its opening index of 35,403.92 points to close at 35,609.07 points. Aggregate market value of all quoted equities also increased from its opening value of N12.203 trillion to close at N12.273 trillion.

Most sectoral indices closed positive. The NSE Oil & Gas Index led with a gain of 1.3 per cent. The NSE Consumer Goods Index appreciated by 0.8 per cent while the NSE Banking Index inched up by 0.1 per cent. However, the NSE Industrial Goods Index declined by 0.5 per cent while the Insurance Index dropped by 0.4 per cent.

Read also: NSE LIVE! Equities open September with N34bn loss

Seplat Petroleum Development Company led the advancers with a gain of N16.02 to close at N482. Guinness Nigeria rose by N8.12 to close at N87.39. Nigerian Breweries appreciated by N2.50 to close at N182.60. Dangote Cement rose by N2.12 to close at N207.12. Zenith Bank rose by 66 kobo to close at N23.76. Stanbic IBTC Holdings added 49 kobo to close at N39.01. Red Star Express rose by 43 kobo to close at N4.81 per share. Seven-Up Bottling Company and Unilever Nigeria added 30 kobo each to close at N90.30 and N38.05 respectively while Newsrest ASL chalked up 28 kobo to close at N5.96 per share.

Investors traded a total of 281.83 million shares worth N5.42 billion in 4,066 deals. Banking stocks dominated the activities chart. Guaranty Trust Bank was the most active stock with 68.54 million shares valued at N2.69 billion. Access Bank followed with 56.64 million shares worth N577.67 million while FBN Holdings placed third with 32.69 million shares valued at N194.70 million.

On the downside, Mobil Oil Nigeria led the decliners with a drop of N1.50 to close at N166. PZ Cussons Nigeria declined by N1.36 to close at N25.94. Lafarge Africa dropped by N1.34 to close at N52.80. Guaranty Trust Bank dipped by 49 kobo to close at N38.51. United Bank for Africa and Dangote Sugar Refinery lost 14 kobo each to close at N8.87 and N13.05 respectively while Custodian and Allied, Cement Company of Northern Nigeria, Dangote Flour Mills and UAC of Nigeria dropped by 10 kobo each to close at N3.50, N8.90, N6.28 and N14.50 respectively.

Analysts at Afrinvest Securities said the market remained edgy given the close trades between bargain-hunters and profit-takers.

“Hence, we are of the view that the equities market may trade sideways in the short term,” Afrinvest Securities-a Lagos-based dealer on the NSE, stated.

 

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