NSE LIVE! Equities open with modest gain as CBN meets on monetary policies

Nigerian equities opened this week with a positive outlook as investors jostle to take positions in quoted companies ahead of the earnings reports and dividend recommendations for the 2016 business year.

With 19 advancers to 15 decliners, all major indices at the Nigerian Stock Exchange (NSE) showed a subtle rally as concerns remain over the Central Bank of Nigeria (CBN)’s management of the foreign exchange crisis.

The Monetary Policy Committee of the CBN on Monday started a two-day meeting that will focus mainly on the foreign exchange, inflation rate and interest rate. Most analysts expected the apex bank to maintain the status quo.

With many quoted companies expected to release their financial statements in the next few weeks, investors appeared to have stepped up bargain-hunting for value stocks. The All Share Index (ASI), the value-based benchmark index that tracks prices at the NSE rose slightly by 0.03 per cent from 26,223.54 points to close at 26,231.37 points. Aggregate market value of all quoted equities on the NSE also improved modestly by N3 billion from N9.023 trillion to close at N9.026 trillion. With this, the negative average year-to-date return moderated to -2.39 per cent.

The overall market performance was driven largely by gains recorded by Total Nigeria, Nigerian Breweries, Guinness Nigeria, GlaxoSmithKline Consumer Nigeria and Oando Plc. The pricing trend also reflected on the sectoral indices. The NSE Oil & Gas Index recorded above average gain of 0.14 per cent.

The NSE Consumer Goods Index appreciated by 0.04 per cent while the NSE Industrial Goods Index inched up by 0.01 per cent. However, the NSE Banking Index declined by 0.03 per cent while the NSE Insurance Index closed flat.

Read also: NSE LIVE! Equities drop by 0.17% in third straight negative session

Total Nigeria, the fourth best-performing stock in 2016, led the advancers with a gain of N6 to close at N287. Nigerian Breweries, Nigeria’s second most capitalised quoted company, followed with a gain of N2.44 to close at N144.50. Guinness Nigeria, the second most capitalised brewer, rose by N1.50 to close at N68.50. GlaxoSmithKline Consumer Nigeria added 25 kobo to close at N16. Oando gathered 18 kobo to close at N4.75. UACN Property Development Company chalked up 14 kobo to close at N3.02 while Eterna added 12 kobo to close at N3.60 per share.

Total turnover stood at 228.59 million shares valued at N2.58 billion in 3,228 deals. United Bank for Africa was the most active stock with 41.26 million shares worth N214.33 million. Access Bank recorded a turnover of 30.9 million shares valued at N216.3 million while Presco placed third with 23.1 million shares valued at N1.02 billion.

On the downside, Nestle Nigeria, the highest-priced quoted company, led the decliners with a loss of N25 to close at N720. Forte Oil followed with a loss of N2.62 to close at N63.88. Cadbury Nigeria lost 13 kobo to close at N9. Guaranty Trust Bank and Honeywell Flour Mills dropped by 6.0 kobo each to close at N23.90 and N1.18 while Zenith Bank, Africa Prudential Registrars and May ad Baker Nigeria declined by 5.0 kobo each to close at N15.95, N3.05 and 97 kobo respectively.

“Despite the modest benchmark index gain, we note the rally currently ongoing in small- to mid-cap stocks which continues to defy the weak macroeconomic sentiment. We expect that segment of the market to continue to outperform whilst still conservative on aggregate market performance,” Afrinvest Securities stated in post-trading advisory note.

 

 

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