NSE LIVE! Equities in modest recovery amidst tight trades

In from Success Allantee …
Quoted equities staged a modest recovery yesterday, regaining the overall positive market situation that was briefly halted on Tuesday by profit-takers. The market was however overtly cautious as turnover fell below average in a seeming pause by investors ahead of the United States’ interest rate decision.
With 26 gainers to 21 losers, quoted equities on the Nigerian Stock Exchange (NSE) recorded a modest day-on-day return of 0.16 per cent, equivalent to capital gains of N16 billion. The upswing yesterday, although marginal, returned the market to its recent streak of positive run, after it was halted on Tuesday. After total gains of N326 billion in two successive trading sessions on Friday and Monday, quoted equities had succumbed to profit-taking transactions on Tuesday, dropping by N20 billion.
Aggregate market value of all quoted equities rose from N10.418 trillion to close at N10.434 trillion. The All Share Index (ASI) – the common value-based index that tracks prices of all quoted equities rose slightly by 0.16 per cent to close at 30,359.47 points as against its opening index of 30,311.77 points. Average year-to-date return moderated slightly to -12.40 per cent, still highlighting previous accumulated losses by investors over the past eight and half months.
Oil and gas stocks led the modest rally with three oil majors- Total Nigeria Plc, Seplat Petroleum Development Company Plc and Mobil Oil Nigeria Plc, leading the rally. Total Nigeria, Nigeria’s downstream major, led other 25 advancing stocks with a gain of N6.38 to close at N150. Seplat-an oil and gas exploration and production company; followed with a gain of N3 to close at N233. Mobil Oil Nigeria, another downstream major, rose by N2.50 to close at N145 per share. Cadbury Nigeria gathered N1.14 to close at N24.07. Guaranty Trust Bank added 51 kobo to close at N24.01. Zenith Bank rose by 48 kobo to N17.75. Flour Mills of Nigeria chalked up 24 kobo to close at N22.84. Union Bank of Nigeria rose by 22 kobo to N6.13 while Nascon Allied Industries and Red Star Express added 20 kobo each to close at N6.50 and N4.23 respectively.
Analysts at Cowry Asset Management Limited attributed the modest recovery to resumption of bargain-hunting transactions by investors ahead of major cabinet decisions expected this month. Most analysts said the market was in a cautious mode as investors wait on key national decisions and interest rate decision by the US Federal Reserve.
Turnover of activity however fell below recent average as investors traded a total of 169.86 million shares valued at N1.42 billion in 3,518 deals. FBN Holdings was the most active stock with a turnover of 39.49 million shares worth N242.79 million in 582 deals. United Capital followed with a turnover of 21.72 million shares worth N31.61 million in 56 deals while Unity Bank placed third with the exchange of 12.62 million shares worth N16.01 million in 62 deals.

Read also: NSE LIVE! Equities slow down amidst profit-taking

Analysts at Afrinvest Securities said the slowdown in the momentum of activities underlined apprehensions over the Thursday decision of the US Federal Reserve on interest rate.
“We believe the reduced activity in the market today may be linked to the expectations from the FOMC meeting beginning today. At the end of the meeting, the US Federal Reserve (FED) is anticipated to make a major call on whether or not to hike interest rates for the first time in close to ten years. Thus, we advise investors to trade cautiously,” Afrinvest Securities stated.
On the downside, Guinness Nigeria topped the 21-stock losers’ list with a loss of N7.22 to close at N155.23. Forte Oil followed with a drop of N1.29 to close at N226.50. Nigerian Breweries declined by 55 kobo to close at N134 per share. FBN Holdings lost 14 kobo to close at N6.34 while FCMB Group and Unity Bank declined by 11 kobo each to close at N2.36 and N1.25 respectively.

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