NSE LIVE! Equities in marginal recovery with N7b gain

After three consecutive negative trading sessions, Nigerian equities rode on the back of emerging bargain-hunting trend and inflow of more corporate earnings and interim dividends to stage a modest recovery in a tight market situation that saw equal number of advancers and decliners.

Key indices at the Nigerian Stock Exchange (NSE) indicated average gain of 0.08 per cent, equivalent to a net capital gain of N7 billion after the five-hour trading session on Wednesday. The gains came many sectoral leaders released their third quarter earnings. These included Union Bank of Nigeria (UBN), FBN Holdings, Unilever Nigeria, Conoil, and Nigerian Breweries and Total Nigeria, which declared interim dividends.

Aggregate market value of all quoted equities on the NSE increased marginally from N9.308 trillion to close at N9.315 trillion. The All Share Index (ASI) also inched up from 27,098.52 points to close at 27,120.39 points. The gain moderated the negative average year-to-date return to -5.31 per cent.

With 17 gainers and losers each, sectoral indices further reflected the tight market situation. The NSE Consumer Goods Index appreciated by 0.5 per cent. The NSE Banking Index improved by 0.14 per cent while the NSE Industrial Goods Index increased marginally by 0.04 per cent. However, the NSE Oil & Gas Index dropped by 0.7 per cent while the NSE Insurance Index slipped by 0.6 per cent.

Unilever Nigeria led the gainers with a gain of N2.11 to close at N48.01. Beta Glass and Nigerian Breweries followed with a gain of 50 kobo each to close at N31.50 and N146 respectively. E-Tranzact added 47 ko0bo to close at N5.12 while Dangote Sugar Refinery rose by 28 kobo to close at N6.50 per share.

Read also: NSE LIVE! Equities’ losses worsen to N163bn

Total turnover was above recent average with the exchange of 159.98 million shares worth N1.74 billion in 2,396 deals. The three most active stocks were FBN Holdings, with 53.80 million shares; Unilever Nigeria, 14.29 million shares and Transnational Corporation of Nigeria, with 11.55 million shares.

Market analysts attributed the modest recovery to bargain-hunting transactions as investors sought to take advantage of the declined share prices, especially against the background of improved earnings by many companies.

Emerging third quarter reports are expected to continue to shape the market direction, especially with several companies expected to file their results in the next three working days in line with the October 31, 2016 deadline under the rules at the stock market.

On the negative side, Forte Oil led the losers with a loss of N3.80 to close at N123.50. Nestle Nigeria followed with a loss of N2.05 to close at N797.95. Julius Berger Nigeria declined by N2 to close at N38. UAC of Nigeria dropped by 97 kobo to close at N18.43. Capital Hotels declined by 18 kobo to close at N3.50 while Guaranty Trust Bank and PZ Cussons Nigeria lost 15 kobo each to close at N24 and N16.50 respectively.

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