NSE LIVE! Equities break even with N273bn gain in 5 hours

Nigerian equities erased the last vestige of negative overhang on Wednesday and rallied to a positive average year-to-date return of 2.50 per cent as an exceedingly positive market situation left investors with net capital gain of N273 billion in five hours. In a double, investors staked N5 billion on shares during the period.

The benchmark index at the Nigerian Stock Exchange (NSE) rose to a six-month high as the All Share Index (ASI) crossed to 27,000 index points from 26,756.21 points to close at 27,546.68 points. The average day-on-day gain of 2.95 per cent effaced the last negative year-to-date return of -0.44 per cent and left investors on the upside with 2.50 per cent year-to-date return.

With more than five advancers to every decliner, aggregate market value of all quoted equities rose from its opening value of N9.249 trillion to close at N9.522 trillion, representing a gain of N273 billion.

Most sectoral indices also continued on the uptrend. The NSE Banking Index rose by 4.1 per cent. The NSE Consumer Goods Index appreciated by 3.6 per cent. The NSE Oil & Gas Index rose by 2.4 per cent while the NSE Insurance Index added 0.7 per cent.

There were 50 gainers against nine losers on Wednesday. Nestle Nigeria continued atop the gainers’ list with a gain of N38 to close at N798. Total Nigeria followed with a gain of N6 to close at N255. Dangote Cement and Nigerian Breweries rose by N4.01 to close at N166.01 and N136.01 respectively while Seven-Up Bottling Company rallied N3 to close at N105.

Read also: NSE LIVE! Equities’ rally gathers momentum with N117bn gain

Turnover was also above average with the exchange of 584.11 million shares valued at N5.65 billion in 5,121 deals. Banks remained the most sought after stocks. United Bank for Africa was the most active with 104.21 million shares valued at N669.85 million. Diamond Bank followed with 53.93 million shares worth N48.78 million while Zenith Bank recorded a turnover of 50 million shares valued at N841.22 million.

On the negative side, Lafarge Africa led the losers with a loss of N2.42 to close at N46.08. Newrest ASL dropped by 24 kobo to close at N4.73. Cement Company of Northern Nigeria lost 7.0 kobo to close at N4.66. Jaiz Bank and NPF Microfinance Bank declined by 5.0 kobo each to close at N1 and N1.33 respectively while Caverton Offshore Support Group lost 4.0 to close at 89 kobo.

“We expect the current bullish mood to be sustained following the renewed interest by investors. Although, we do not rule out the possibilities of profit taking on recent gains,” SCM Capital Markets stated.

Analysts at Afrinvest Securities stated that the bullish rally was a reflection of growing confidence in the economy as underlined by improving macroeconomic fundamentals.

“The sustained positive market breadth indicates investors are still spotting opportunities in equities on the back of recent improvement in fundamental drivers including earnings, economic growth outlook and foreign exchange policy. Thus, we maintain our positive short term view of the equities market,” Afrinvest Securities stated.

 

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