Nigerian equities broke into a major rally on Tuesday as investors upped demand for value stocks across major sectors of the economy.
With nearly two advancers to a decliner, investors showed more appetite for quoted equities with turnover volume and value rising by 68 per cent and 36 per cent respectively.
Aggregate market value of all quoted equities on the Nigerian Sto0ck Exchange (NSE) rose from its opening value of N8.699 trillion to close at N8.751 trillion, representing net capital gain of N52 billion.
The All Share Index (ASI), the benchmark index for the equities market, also rose correspondingly by 0.59 per cent to close at 25,284.56 points as against its opening i9ndex of 25,136.63 points. The negative average year-to-date return thus moderated to -5.92 per cent.
With 21 gainers to 12 losers, most sectoral indices closed in the positive. The NSE Oil & Gas Index rose by 2.4 per cent. The NSE Banking Index rallied a gain of 1.3 per cent. The NSE Insurance Index rose by 0.4 per cent while the NSE Consumer Goods Index inched up by 0.3 per cent. However, the NSE Industrial Goods Index declined by 1.8 per cent.
Seplat Petroleum Development Company led the gainers with a gain of N19 to close at N399. Nigerian Breweries followed with a gain of N1 to close at N131. Forte Oil rose by 91 kobo to close at N50. Dangote Cement and Guaranty Trust Bank appreciated by 50 kobo each to close at N160.50 and N25.50 respectively. UAC of Nigeria and Zenith Bank also chalked up 46 kobo each to close at N14.20 and N13.76 per share.
Investors upped demand for shares, with more preference for low-priced stocks in the financial services sector. Total turnover rose to 227.75 million shares valued at N928.5 million in 2,543 deals. Diamond Bank was the most active stock with a turnover of 57.64 million shares valued at N48.59 million. FBN Holdings followed with 32.88 million shares worth N101.07 million while NEM Insurance placed third with 25.93 million shares worth N22.5 million.
“We anticipate another round of positive trading at tomorrow`s session with the bulls regaining momentum as the market looks attractive for an uptick,” analysts at SCM Capital Markets stated.
“Market performance today (Tuesday) was dictated by bargain hunting as short term investors continue speculative activities. Nonetheless, we do not expect the bullish trend to persist and expect the market to trade sideways in tomorrow’s session as broader macroeconomic landscape continues to weigh on sentiment,” Afrinvest Securities stated.
Meanwhile, Lafarge Africa led the losers with a loss of N1.78 to close at N34.50. Ecobank Transnational Incorporated followed with a loss of 50 kobo to close at N10. Nascon Allied Industries dropped by 35 kobo to close at N6.65 while Julius Berger Nigeria lost 30 kobo to close at N39.95 per share.
RipplesNigeria ….without borders, without fears