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NSE LIVE! Equities’ gain rises to N755bn as rally continues

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Investors in Nigerian equities have so far this year earned N755 billion as net capital gains as impressive performance in 2017 and expectations on impending corporate earnings continue to drive a major rally at Nigerian stock market.

Quoted equities rallied net capital gain of N183 billion on Tuesday to push the net capital gain for the seven-day trading session so far this year to N755 billion. In percentage terms, average return on Tuesday stood at 1.29 per cent, nudging the average year-to-date return to 5.54 per cent.

With nearly seven advancers against every decliner, the overall market position showed a widespread positive sentiment. The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), trended upward to a new high of 40,362.97 points as against its opening index of 39,849.65 points. Aggregate market value of all quoted equities also rose correspondingly from its opening value of N14.181 trillion to close at N14.364 trillion.

Sectoral analysis showed a broad rally with nearly all sectoral indices closing positive. The NSE Banking Index posted above-average return of 2.3 per cent. The NSE Oil & Gas Index rose by 1.2 per cent while the NSE Insurance Index and NSE Industrial Goods Index chalked up by 0.7 per cent each. However, the NSE Consumer Goods Index dropped by 0.3 per cent.

Read also: NSE LIVE! Equities rally N330bn gain to hit N14tn

There were 47 advancers against seven decliners. Seplat Petroleum Development Company led the advancers with a gain of N10 to close at N660. Dangote Cement followed with a gain of N3.24 to close at N237.50. Guinness Nigeria appreciated by N2 to close at N102. Conoil rose by N1.62 to close at N34.03 while Mobil Oil Nigeria and Presco rose by N1.50 each to close at N180 and N68 respectively.

Most analysts remained optimistic about the market outlook, although sustained rally may trigger a tinge of profit-taking. “Although market sentiment remains strong and positive, the bullish momentum will likely slowdown in subsequent sessions with profit taking,” analysts at FSDH Securities stated.

Total turnover increased to 770.89 million shares valued at N7.89 billion in 7,395 deals. Investors appeared to show preference for low-priced stocks, otherwise known as penny stocks. Diamond Bank led the activities chart with a turnover of 219.65 million shares valued at N441.24 million. Transnational Corporation of Nigeria followed with 139.92 million shares worth N254.92 million while FCMB Group placed third with 74.62 million shares worth N154.71 million.

On the negative side, Nigeria’s highest-priced stock-Nestle Nigeria led the decliners with a loss of N50 to close at N1,450 per share. GlaxoSmithKline Consumer Nigeria placed second with a drop of 30 kobo to close at N21.80. Nigerian Aviation Handling Company lost 21 kobo to close at N4.29. Union Bank of Nigeria lost 20 kobo to close at N7.50 while UACN Property Development Company declined by 15 kobo to close at N3.03 per share.

“Following four consecutive days of appreciation, we do not rule out the possibility of some profit taking later in the week. Nevertheless, as investor sentiment waxes stronger, our near term outlook on the market remains positive,” Afrinvest Securities-a Lagos-based dealer at the NSE, stated in its investment note.

 

 

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