The rally at the Nigerian stock market entered the ninth consecutive trading session on Tuesday as investors continued bargain-hunting for value stocks.
Benchmark indices at the Nigerian Stock Exchange (NSE) showed improved investors’ appetite with average day-on-day gain of 0.41 per cent, equivalent to net capital gain of N47 billion.
With 25 gainers to 19 losers, the market performance was driven by widespread positive sentiment, especially within the large-cap stocks. The rally pushed the average year-to-date gain to 24.42 per cent.
Aggregate market value of all quoted equities rose from its opening value of N11.477 trillion to close at N11.524 trillion. The All Share Index (ASI)-the value-based common index that tracks share prices, also improved from its opening index of 33,301.43 points to close at 33,436.61 points.
Sectoral indices showed that the overall market performance was driven largely by gains within the highly capitalised stocks in the fast moving consumer goods and industrial goods sectors. The NSE Consumer Goods Index rose by 1.4 per cent while the NSE Industrial Goods Index appreciated by 0.4 per cent. However, the NSE Insurance Index declined by 1.7 per cent. The NSE Oil & Gas Index dipped by 0.6 per cent while the NSE Banking Index dropped by 0.3 per cent.
Nestle Nigeria-the highest-priced stock at the Exchange, led the gainers with a gain of N16 to close at N920. Beta Glass followed with a gain of N2.70 to close at N57.47. Okomu Oil Palm rose by N2.62 to close at N63. Unilever Nigeria appreciated by N1.81 to close at N38.19. Nigerian Breweries-the second most capitalised quoted company, added N1.73 to close at N159.11. Julius Berger Nigeria rose by N1.63 to close at N34.30.
Dangote Cement-the most capitalised quoted company, chalked up 80 kobo to close at N210. Dangote Sugar Refinery rallied by 38 kobo to close at N9.04. PZ Cussons Nigeria rose by 35 kobo to close at N21 while Union Bank of Nigeria garnered 27 kobo to close at N5.67 per share.
On the negative side, Forte Oil led the losers with a loss of N2.54 to close at N57.96. Cadbury Nigeria dropped by 56 kobo to close at N12. Zenith Bank lost 42 kobo to close at N21.53. Custodian and Allied declined by 17 kobo to close at N3.40. May & Baker Nigeria lost 14 kobo to close at N2.65. Nigerian Aviation Handling Company dropped by 13 kobo to close at N2.85 while AXA Mansard Insurance and Vitafoam Nigeria lost 11 kobo each to close at N2.12 and N2.69 respectively.
Total turnover surged to 2.4 billion shares valued at N21.61 billion in 3,715 deals. The turnover was buoyed by a cross deal struck by United Bank for Africa (UBA), which transferred the shares under its Staff Share Investment Trust Scheme (SSIT) to itself, preparatory to the cancellation of such shares and closure of the SSIT. UBA expectedly was the most active stock with a turnover of 2.09 billion shares valued at N19.76 billion. Continental Reinsurance followed with 174.42 million shares worth N219.77 million while FBN Holdings ranked third with 35.51 million shares worth N208.48 million.
“We expect the rebound in market breadth, which suggests an upturn in investor sentiment towards equities, to persist in the near term as market performance remains largely driven by expectations of positive half year earnings reports,” Afrinvest Securities stated.
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