NSE LIVE!… Equities in strong start with N135b gain

It was a dramatic but exciting start yesterday at the Nigerian Stock Exchange (NSE) as Nigerian equities almost regained the losses it suffered in four consecutive declines last week in the opening trading for this week.

Aggregate market value of all quoted companies added N135 billion in capital gains, with the indices indicating a day-on-day average gain of 1.2 per cent. Nigerian equities had lost 1.22 per cent, equivalent to about N138 billion, last week.

Aggregate market capitalisation of all quoted companies rose from N11.215 trillion to close at N11.350 trillion. The All Share Index (ASI), the composite value-based index that tracks prices of all quoted equities, rose by 395.70 basis points or 1.20 per cent from its opening index of 32,853.49 points to close at 33,249.19 points. The appreciation moderated the negative average year-to-date return to – 4.06 per cent.

But most analysts remained cautious citing the recent trading patterns.

“We anticipate that market trend in past weeks will be maintained such that quick profits are made at the beginning of the week based on relatively cheap stocks, then sentiment wanes towards the end of the week,” Afrinvest Securities stated in post-trading review.

Read Also: NSE LIVE! Equities lose N138b as macro uncertainties persist

The past two weeks had seen the market opening Monday on the upside but subsequently sustained consecutive losses throughout the remaining trading sessions of the week.

With 30 gainers to 20 losers, the market performance was boosted by gains by highly capitalised stocks and widespread positive sentiments. Forte Oil led the gainers’ table by N9.10 to close at N191.10 per share. Seplat Petroleum Development Company followed with a gain of N8.81 to close at N340.06. Guinness Nigeria rose by N7.67 to close at N161.17 per share. Dangote Cement grew by N4 to close at N174 while Cadbury Nigeria added N1.35 to close at N36.50 per share.

Market activity was also on the upside. Total turnover yesterday stood at 351.513 million shares valued at N5.24 billion in 3,982 deals as against 335.409 million shares worth N9.02 billion traded in 3,462 deals in the previous trading session. Access Bank emerged the most-traded equity with 94.64 million shares worth N543.7 million. Oando followed on the activity chart with 54.73 million shares valued at N899.73 million while FBN Holdings placed third with a turnover of 29.94 million shares worth N238.58 million.

On the downside, Mobil Oil Nigeria led the losers’ table with N3.85 to close at N155 per share. Nestle Nigeria followed with a loss of N2.25 to close at N889.20. Nigerian Breweries dropped by 81 kobo to close at N147.20 per share. GlaxoSmithKline Consumer Nigeria lost 50 kobo to close at N43.50 while Cement Company of Northern Nigeria dropped by 30 kobo to close at N10.20 per share.

The stock market has remained within the grips of macroeconomic uncertainties with many analysts pointing at delay in the constitution of the President Muhammadu Buhari’s cabinet and lack of macroeconomic clarity. President Buhari was sworn in on May 29 but so far he has not made any ministerial appointment or key appointment such as the Secretary to the Government of the Federation. Buhari’s party, which has the majority in the two chambers of the National Assembly, has been bogged down by wrangling over the appointments, with all appointments so far against the decisions of the party hierarchy.

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