NSE LIVE! Bargain-hunting spurs equities to N56bn gain

The tenuous market situation at the Nigerian Stock Exchange (NSE) broke into a visible rally on Thursday as bargain-hunters increased demand for value stocks in the key sectors of the economy.

Benchmark indices at the Exchange showed average gain of 0.63 per cent, equivalent to a net capital gain of N56 billion, the first major rally in recent days.

The gap between the decliners and advancers narrowed to two basis points as quoted breweries sustained third consecutive session of considerable rally.

The aggregate market value of all quoted equities on the NSE increased from its opening value of N8.738 trillion to close at N8.794 trillion. The All Share Index (ASI), the value-based index that tracks prices at the stock market, also rose from 25,249.74 points to close at 25,409.06 points.

The average year-to-date return, though still negative, improved to -5.45 per cent.

Sectoral indices showed widespread positive sentiments. Most sectoral indices closed on the upside. The NSE Banking Index rose by 1.4 per cent. The NSE Consumer Goods Index also appreciated by 1.4 per cent. The NSE Oil & Gas Index rallied 0.3 per cent. The NSE Industrial Goods Index inched up by 0.05 per cent while the NSE Insurance Index closed flat.

Read also: NSE LIVE! Equities on edge amidst selling pressure

Mobil Oil Nigeria led the gainers with a gain of N9.10 to close at N285. Nigerian Breweries, which earlier this week released its audited report for 2016 and dividend recommendation, recorded the second highest gain of N4 to close at N133.99. Guinness Nigeria followed with a gain of N3.12 to close at N68.

Guaranty Trust Bank chalked up 93 kobo to close at N24.65. Berger Paints rose by 30 kobo to N6.38 while Julius Berger Nigeria added 27 kobo to close at N38.6.

On the negative side, Unilever Nigeria led the losers with a loss of N1.53 to close at N29.16. UAC of Nigeria followed with a loss of 63 kobo to close at N12.02.Dangite Sugar Refinery dropped by 19 kobo to close at N6. Access Bank and Nascon Allied Industries dropped by 15 kobo each to close at N6.69 and N7.20 respectively while Oando lost 14 kobo to close at N4.81 per share.

Total turnover stood at 146.70 million shares valued at N1.75 billion in 2,563 deals. The three most active stocks were FCMB, with 28.96million shares; Fidelity Bank, 20.85 million shares and United Capital, which recorded turnover of 17.10 million shares.

“The relatively cheap valuation of some value counters that have been beaten in previous trading sessions suggests an attractive entry opportunity for short term traders and long-term investors. With the benchmark index now above the oversold region following today’s rally, we expect a soft performance in subsequent trading sessions,” Afrinvest Securities, a Lagos-based dealer at the Exchange, stated in post-trading note.

 

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