NSE LIVE! Cement, banking stocks lift equities

The Nigerian equities witnessed widespread selling pressure in the first trading session of the week but gains by the major stocks in the cement and banking sectors boosted the overall market position of stocks.

While there were 22 decliners to 16 advancers, gains by highly capitalised stocks-mainly Dangote Cement, Lafarge Africa, Guaranty Trust Bank and Zenith Bank, lifted the market to a positive close with a gain of N71 billion.

Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from its opening value of N8.839 trillion to close at N8.910 trillion. The All Share Index (ASI)-the value-based index that tracks prices of all quoted equities, appreciated by 0.81 per cent to close at 25,902.95 points as against its opening index of 25,694.79 points.

The upswing helped to moderate the double-digit negative average –year-to-date return to a single digit at -9.56 per cent.

“Despite the general negative sentiments, investors still see value in some Bellwethers trading at attractive entry prices,” analysts at Afrinvest Securities noted.

Analysts at FSDH Securities said there were also excitements about dividend recommendations, citing the 9.41 per cent gain by United Capital, which had declared a dividend per share of 35 kobo. Sterling Bank also announced a dividend per share of 9.0 kobo as earnings showed stable outlook.

Dangote Cement, NSE’s most capitalised stock, led the rally with a gain of N3 to close at N168. Lafarge Africa followed with a gain of N1.61 to close at N82.61. Guaranty Trust Bank, the most capitalised banking stock, rose by 71 kobo to N16.38. Zenith Bank added 40 kobo to close at N13.19 while UAC of Nigeria chalked up 43 kobo to close at N20.48 per share.

Total turnover stood at 412.47 million shares worth N2.07 billion in 3,285 deals. The three most active stocks were Zenith Bank, with 50.05 million shares, Fidelity Bank, 47.62 million shares; and Afromedia, which traded 45.49 million shares.

“As more corporate releases trickle in, we believe market performance will be driven by investors’ reactions to the results even as we expect to see buying interest in companies that have declared dividend in the current earnings season,” Afrinvest Securities, a dealer on the NSE, stated in post-trading review.

Analysts said they expected the decisions at the meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria, which ends today, to also moderate the mood of the market.

On the downside, Mobil Oil Nigeria led the losers with a loss of N8.55 to close at N162.45. PZ Cussons Nigeria followed with a loss of N1.20 to close at N22.84. Nigerian Breweries dropped by N1 to close at N104. Union Dicon Salt declined by 56 kobo to N10.69 while Nascon Allied Industries lost 38 kobo to close at N7.22 per share.

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