NSE LIVE! Equities sustain high-impact narrow rally

Nigerian equities remained on the upswing on Tuesday but the undercurrents at the stock market showed widespread sell pressure, limiting the positive overall market position to gains by a handful of highly capitalised stocks.

With nearly two decliners to every advancer, the pricing trend at the Nigerian Stock Exchange (NSE) was predominantly negative but gains by leading fast moving consumer goods companies overshadowed the widespread losses.

The All Share Index (ASI), the value-based common index that tracks prices of all quoted equities on the NSE, indicated a gain of 0.45 per cent to close at 26,020.32 points as against its opening index of 25,902.95 points. Aggregate market value of all quoted equities rose by N41 billion from N8.910 trillion to close at N8.951 trillion. This further moderated the negative average year-to-date return to -9.15 per cent.

“The appreciation recorded in the share prices of Nigerian Breweries, Unilever Nigeria, Guinness Nigeria, Nestle Nigeria and FBN Holdings were mainly responsible for the gain recorded in the index,” FSDH Securities, a Lagos-based trader on the NSE, stated.

Nestle Nigeria, NSE’s highest-priced stock, led the 15-stock rally with a gain of N22 to close at N702. Nigerian Breweries, Nigeria’s second most capitalised stock, followed with a gain of N5.20 to close at N109.20. Guinness Nigeria added N4.01 to close at N112. Unilever Nigeria rose by N1.47 to close at N30.92 per share. UAC of Nigeria rose by 47 kobo to close at N20.95 while United Capital added 18 kobo to close at N2.04.

Total turnover stood at 344.11 million shares valued at N2.46 billion in 4,386 deals. The three most active stocks were Guaranty Trust Bank, with 69.61 million shares; Fidelity Bank, 53.31 million shares and United Bank for Africa (UBA), which recorded a turnover of 32.64 million shares. Financial services sector accounted for 83 per cent of the total turnover volume with the exchange of 286.23 million shares in the sector.

 

Read also: NSE LIVE! Cement, banking stocks lift equities

On the negative side, Seplat Petroleum Development Company led the 25-stock losers’ list with a loss of N20 to close at N310. PZ Cussons Nigeria followed with a loss of N1.13 to close at N21.71. Nascon Allied Industries dropped by 36 kobo to close at N6.82. Zenith Bank declined by 29 kobo to close at N12.90. UACN Property Development Company lost 25 kobo to close at N4.85. Nigeria Aviation Handling Company dropped by 25 kobo to N4.85 while Union Bank of Nigeria declined by 17 kobo to close at N5.60 per share.

Analysts at Afrinvest Securities said the sentiments at the market appeared to be insulated from the decision of the Central Bank of Nigeria (CBN) to increase its benchmark interest rate in another tightening move on Tuesday.

“…we expect to see some traction in Tier-1 banking tickers following the CBN’s tightening moves. Market performance will remain broadly driven by earnings releases in the interim,” Afrinvest Securities stated.

 

 

RipplesNigeria …without borders, without fears

 

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now