NSE LIVE! Equities open new month with modest gain

Nigerian equities broke eight-day recession to start the new month on a positive note but the market situation remained cautious and undecided. After a 9.79 per cent decline in sustained depreciation in July, the stock market opened August with a modest gain of 0.22 per cent.

With a tit-for-tat market that saw advancers and decliners on the same level, the market situation remained tight and several analysts were unsure of the continuation of the positive start. Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) increased from its opening value of N10.344 trillion to close at N10.368 trillion.

The All Share Index (ASI), the benchmark index that tracks prices of all quoted companies, broke its losing cycle to close higher at 30,247.83 points as against its opening index of 30,180.27 points. The modest gain moderated the average year-to-date return, which had closed July at -12.92 per cent, to -12.72 per cent.

“Notwithstanding the slight gain recorded today, we do not believe the trend will be sustained in the coming sessions as investors still maintain a soft outlook for the economy,” analysts at Afrinvest Securities said in post-trading comment.

The positive market position was largely driven by the presence of some highly capitalised stocks among the advancing stocks. Guinness Nigeria led the 21-stock gainers’ list with a gain of N4.92 to close at N130.02 per share. Forte Oil followed with a gain of N2 to close at N190. Flour Mills of Nigeria rose by N1.43 to close at N30.43. Dangote Cement, the most capitalised stock on the NSE, added N1 to close at N172. Stanbic IBTC Holdings chalked up 38 kobo to close at N22 while Ecobank Transnational Incorporated (ETI) added 27 kobo to close at N19.30.

There were also 21 losers. Total Nigeria led the list with a drop of N3 to close at N160. UAC of Nigeria followed with a loss of N2 to close at N36. Northern Nigeria Flour Mills declined by 77 kobo to close at N14.72. Nigerian Breweries dropped by 50 kobo to close at N120.50. Oando lost 39 kobo to close at N12.11. Champion Breweries slipped by 26 kobo to close at N5.10 while Union Bank of Nigeria (UBN) dropped by 25 kobo to close at N7.50 per share.

Turnover was above average with the exchange of 320.25 million shares valued at N3.53 billion in 3,279 deals. Financial services sector accounted for 275.25 million shares worth N2.36 billion in 1,980 deals.

Nigerian equities have so far this year struggled with a gripping down market. Seven-month analysis showed that an average investor had lost about 13 per cent of his portfolio and more than N1 trillion had been wiped away from total market value of quoted companies.

The ASI closed July at 30,180.27 points as against 34,657.15 points recorded at the beginning of this year, representing a decline of 4,476.88 basis points or 12.92 per cent. Aggregate market value of all quoted companies also followed the same downtrend; dropping from its year’s opening value of N11.478 trillion to close at the weekend at N10.344 trillion, indicating capital gain loss of N1.13 trillion.

Read also: NSE LIVE! Equities lose N1.13tr in 7 months

Ripples… 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