For the third consecutive trading session, Nigerian equities on Wednesday continued on the upswing as investors sought to take positions in bargain-stocks in early trades for the fourth quarter and year-end earnings and returns.
Benchmark indices at the Nigerian Stock Exchange (NSE) indicated a day-on-day average return of 0.56 per cent at the close of business on Wednesday, equivalent to net capital appreciation of N72 billion. The average year-to-date return stood at 37.26 per cent.
The All Share Index (ASI)-the value-based index that tracks share prices at the Exchange, trended upward to 36,887.20 points as against its opening index of 36,680.29 points. Aggregate market value of all quoted equities also rose correspondingly from its opening value of N12.695 trillion to close at N12.767 trillion.
All sectoral indices closed positive, underlining both the gains by highly capitalised stocks and the widespread positive sentiments across the sectors. The NSE Industrial Goods Index rose by 0.9 per cent. The NSE Oil & Gas Index appreciated by 0.4 per cent. The NSE Banking Index and NSE Insurance Index rose by 0.2 per cent each while the NSE Consumer Goods Index inched up by 0.01 per cent.
Mobil Oil Nigeria led 22 other advancers with a gain of N6 to close at N161. Nigeria’s largest quoted company, Dangote Cement, followed with a gain of N3.50 to close at N227.50. Presco rose by N3.32 to close at N69.82. International Breweries appreciated by N1.01 to close at N50 while Flour Mills of Nigeria added 61 kobo to close at N32.11 per share.
Total turnover stood above average at N249.34 million shares valued at N5.20 billion in 4,119 deals. Banking stocks remained atop activities chart. The three most active stocks were FBN Holdings, 40.09 million shares; Sterling Bank, 31.95 million shares and Diamond Bank, which recorded 26.03 million shares.
On the downside, Nestle Nigeria-Nigeria’s highest-priced stock, led 20 other decliners with a loss of N2 to close at N1, 250. Stanbic IBTC Holdings followed with a drop of N1.14 to close at N42.50. Nascon Allied Industries declined by 65 kobo to close at N15.55. Cadbury Nigeria and PZ Cussons Nigeria dropped by 39 kobo each to close at N10.11 and N22.61 while Newrest ASL lost 37 kobo to close at N7.11 per share.
“We expect the gains in the oil market to further support banks asset quality metrics and fiscal balance, aid the economic recovery and strengthen the case for staying invested in Nigerian assets,” Afrinvest Securities stated.
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