On the back of a gain of N197 billion last week, Nigerian equities continued on their bullish run on Tuesday as investors sustained bargain-hunting transactions in a market that has increasingly become a seller’s market.
Benchmark indices at the Nigerian Stock Exchange (NSE) indicated that equities recorded a day-on-day average gain of 0.80 per cent on Tuesday, equivalent to a capital gain of N71.3 billion. However, the delisting of four companies-UTC, Beco Petroleum, MTI and MTECH Communications, shaved the net capital gain to N62 billion. The sustained rally reduced the negative overhang at the stock market as the average year-to-date return improved to -3.38 per cent.
With nearly two advancers for every decliner, aggregate market value of all quoted companies on the NSE rose from the opening value of N8.913 trillion to close at N8.975 trillion. The All Share Index (ASI)-the value-based index that tracks prices of quoted equities, also increased from 25,758.51 points to close at 25,965.18 points.
Most sectoral indices closed in the green as investors continued to respond to first quarter corporate earnings that showed a generally improving performance. The NSE Banking Index appreciated by 1.5 per cent. The NSE Oil & Gas Index rose by 1.2 per cent. The NSE Consumer Goods Index appreciated by 0.9 per cent. The NSE Insurance Index inched up by 0.02 per cent while the NSE Industrial Goods Index closed flat.
Nestle Nigeria, the highest-priced stock, led the 22-stock gainers’ list with a gain of N17.99 to close at N744.99. Seplat Petroleum Development Company followed with a gain of N15 to close at N425. Presco rose by N2.25 to close at N47.25. Total Nigeria chalked up N2 to close at N265 while Stanbic IBTC Holdings garnered 76 kobo to close at N27.01.
Total turnover stood at 191.02 million shares valued at N2.13 billion in 3,392 deals. Large-cap banking stocks led the activities chart. Zenith Bank was the most active stock with 34.3 million shares worth N524.34 million. Guaranty Trust Bank followed with 25.65 million shares valued at N690.03 million while Wapic Insurance placed third with 18.4 million shares valued at N9.21 million.
“The positive performance today was majorly driven by the lingering bullish sentiment in the market following solid first quarter 2017 earnings result published last week. Nevertheless, we do not rule out the possibility of some short-term profit taking in trading sessions ahead,” Afrinvest Securities, a Lagos-based dealer at the Exchange, stated.
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