NSE LIVE! Equities in modest gain as Ministers resume

Major equities on the Nigerian stock market showed considerable recovery yesterday as President Muhammadu Buhari swore in newly appointed Ministers into their respective offices. The two main indices at the Nigerian Stock Exchange (NSE) closed on the positive as highly capitalised stocks rallied the overall market to a modest gain of N11 billion or 0.12 per cent.
Aggregate market value of all quoted equities on the NSE rose marginally from N9.963 trillion to close at N9.974 trillion. The All Share Index (ASI), the value-based index that tracks prices of all quoted equities, also inched up from 28,981.12 points to close at 29,014.78 points. The modest gain moderated the negative average year-to-date return to -16.28 per cent.
Analysts said investors were responding to the swearing in of the new Ministers, particularly the allocation of key ministries to individuals with proven experience in good governance. FSDH Merchant Bank said the “announcement of the Federal Cabinet excites the equity market” and helped to reversed the recent negative trend.
“With the swearing-in of cabinet ministers today as well as announcement of their portfolios, investors will be looking out for fiscal policy direction of the Government from the new Ministers of Finance; Industry, Trade & Investments and Budget & National Planning. We are moderately bullish on the individuals nominated for the three portfolios as well as the former governor of Lagos State, Mr. Fashola as minister of Power, Works and Housing,” said analysts at Afrinvest Securities.
Analysts however said there might be no marked improvement in investors’ sentiment for equities until the fiscal direction of the administration is rolled-out and more clarity is brought into management of foreign exchange.
“Nevertheless, we believe the sell-off on Nigerian equities is already overdone seeing the current valuation as an attractive entry point for medium to long term investors,” Afrinvest Securities advised.
With 15 gainers to 25 losers, the overall market performance was however driven by gains by a handful of large-cap stocks, with widespread selling sentiments still haunting several stocks. Forte Oil, the highest-priced stock in the oil and gas sector, led the bullish rally with a gain of N5.98 to close at N287.98. Nigerian Breweries, the second most capitalised stock at the NSE, followed with a gain of N3.49 to close at N133. Flour Mills of Nigeria rose by 95 kobo to N21.85. Zenith Bank added 21 kobo to close at N17.20 while Access Bank gathered 18 kobo to close at N4.68 per share.
On the downside, Nestle Nigeria, the highest-priced quoted equity, dropped by N5.99 to close at N817. UAC of Nigeria followed with a loss of N1.19 to close at N27.91. Cadbury Nigeria dropped by N1 to close at N19.10. Oando lost 82 kobo to close at N7.66. International Breweries declined by 74 kobo to close at N15.26. Guinness Nigeria dropped by 73 kobo to close at N137.27. Cement Company of Northern Nigeria lost 72 kobo to close at N8.01. Ashaka Cement dropped by 49 kobo to close at N22.01. Ecobank Transnational Incorporated slipped by 40 kobo to close at N17.60 while Champion Breweries dropped by 20 kobo to close at N3.97 per share.
Total turnover stood at 217.31 million shares valued at N1.46 billion in 3,074 deals. Access Bank was the most active, by volume, with a turnover of 95.62 million shares valued at N445.5 million. Mansard Insurance placed second with a turnover of 20.78 million shares worth N55.9 million.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now