NSE LIVE! Equities rally N1.29tn gain in bullish May

Nigerian equities recorded their biggest rally so far this year in May as investors earned about N1.29 trillion in capital gains within the 21-day trading sessions.

The benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI), indicated a month-on-month gain of 14.52 per cent in May, leaving investors with average year-to-date return of 9.76 per cent.

Aggregate market value of all quoted equities on the NSE closed yesterday at N10.198 trillion, representing a net capital gain of N1.285 trillion on the opening value of N8.913 trillion recorded for the month. The ASI also rose from the month’s opening index of 25,758.51 points to close the month yesterday at 29,498.31 points.

The market sustained a six-day consecutive rally to close May on its highest index point in recent months with several equities closing at their 52-week highs.

At the closing trading session yesterday, there were 31 gainers to 19 losers as investors continued the bargain-hunting for value stocks in banking, industrial goods and consumer goods sectors. Aggregate market value of all quoted equities rose by N77 billion within the five-hour trading session yesterday to close at N10.198 trillion as against its opening value of N10.121 trillion. The ASI also rose simultaneously by 0.76 per cent from 29,276.59 points to close at 29,498.31 points.

Most sectoral indices continued on the uptrend. The NSE Insurance Index rose by 2.5 per cent. The NSE Industrial Goods Index appreciated by 1.9 per cent while the NSE Consumer Goods Index posted a gain of 1.5 per cent. However, the NSE Banking Index dropped by 3.1 per cent while the NSE Oil and Gas Index dipped by 2.3 per cent.

Dangote Cement, the most capitalised company on the Exchange, led the gainers with a gain of N7.90 to close at N175. Nestle Nigeria, the highest-priced stock at NSE, followed with a gain of N5.01 to close at N875.01. Total Nigeria rose by N5 to close at N265. Nigerian Breweries gathered N3.50 to close at N149.50. Unilever Nigeria rallied N1.74 to close at N37.49. Guinness Nigeria added N1 to close at N71.

Read also: NSE LIVE! Equities rally N73bn gain in opening trades

Cadbury Nigeria chalked up 47 kobo to close at N9.89. Berger Paints rose by 29 kobo to close at N6.17. UAC Property Development Company garnered 22 kobo to close at N2.46 while GlaxoSmithKline Consumer Nigeria added 20 kobo to close at N17 per share.

Total turnover stood at 343.19 million shares valued at N3.34 billion in 4,905 deals. Banks dominated activities’ chart. FBN Holdings led the chart with 61.2 million shares valued at N318.9 million. Diamond Bank followed with 41.86 million shares worth N40.38 million while Fidelity Bank placed third with 38.8 million shares worth N40.7 million.

On the downside, Seplat Petroleum Development Company led the losers with a loss of N18.51 to close at N351.99. Seven-Up Bottling Company followed with a drop of N4.98 to close at N94.77. Guaranty Trust Bank dropped by N1.79 to close at N34.01. Stanbic IBTC Holdings declined by 75 kobo to close at N26. Oando lost 44 kobo to close at N8.45. Nascon Allied Industries dropped by 40 kobo to close at N8.50. Flour Mills of Nigeria declined by 24 kobo to close at N21. United Bank for Africa dropped by 22 kobo to close at N7.50 while Ecobank Transnational Incorporated slipped by 20 kobo to close at N10.60 per share.

“We expect the market to remain in the positive territory, given the continuous interest across the counters. However, our momentum oscillator is indicating that market is in the overbought condition, we may likely witness slight profit taking on recent gains,” SCM Capital stated.

Analysts at Afrinvest Securities noted that following six consecutive days of appreciation, investors might start to take profit in the trading session ahead.

“This is further buttressed by the fact that market 14-Day RSI currently stands at 81.9 points-overbought region and historical trend shows that market performance usually turns once the RSI crosses the 80.0 point benchmark,” Afrinvest Securities stated.

 

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