NSE LIVE! Equities sustain rally with N101bn gain

Nigerian equities continued on the uptrend on Wednesday as investors upped demand for value stocks across the sectors.

With nearly two gainers to every loss, benchmark indices showed that the market recorded average gain of 1.05 per cent, equivalent to a net capital gain of N101 billion.

The rally on Wednesday nudged the average year-to-date return to 3.82 per cent. The uptrend was driven by widespread gains across the sectors, especially highly capitalised stocks.

The All Share Index (ASI)-the value-based common index that tracks prices at the Nigerian Stock Exchange (NSE) rose from its opening index of 27,609.67 points to close at 27,900.44 points. Aggregate market value of all quoted equities also rose from opening value of N9.544 trillion to close at N9.645 trillion.

Nearly all sectoral indices closed on the upside. The NSE Consumer Goods Index recorded above-average gain of 2.0 per cent. The NSE Banking Index appreciated by 1.7 per cent. The NSE Oil & Gas Index rose by 1.6 per cent while the NSE Insurance Index inched up by 0.04 per cent while the Industrial Goods Index closed flat.

There were 25 gainers against 13 losers. Highly capitalised stocks headlined the rally with Nestle Nigeria leading the gainers with N24.99 to close at N825.05. Nigerian Breweries followed with a gain of N3 to close at N148. Guaranty Trust Bank rose by N1.20 to close at N30.70. Oando added 77 kobo to close at N8.55. GlaxoSmithKline Consumer Nigeria chalked up 73 kobo to close at N15.43 while Flour Mills of Nigeria garnered 47 kobo to close at N19.45 per share.

Read also: NSE LIVE! Profit-taking shaves off N235bn from equities

Total turnover stood at 371.45 million shares valued at N3.49 billion in 3,910 deals. Access Bank was the most active stock with 96.01 million shares worth N695.34 million. Guaranty Trust Bank followed with 31.34 million shares valued at N945.27 million while Law Union & Rock Insurance placed third with 30.2 million shares valued at N24.2 million.

On the downside, Stanbic IBTC Holdings led the losers with a loss of 50 kobo to close at N26. Union Bank of Nigeria dropped by 15 kobo to close at N5. Zenith Bank declined by 11 kobo to close at N17.10. International Breweries and United Bank for Africa (UBA) lost 10 kobo each to close at N20.90 and N6.50 while Dangote Flour Mills dipped by 7.0 kobo to close at N4.

“As opined in our previous report, the bullish sentiment was sustained in today’s trading session as investor sentiment continues to be boosted by gains recorded in foreign exchange management. We believe the improvements recorded in the foreign exchange market which had hitherto been discouraging the inflow of foreign portfolio investors will unlock more value for equity investors,” Afrinvest Securities stated.

“Investor’s confidence continues to swell as there seems to be a focus on the good news than the bad ones,” Morgan Capital Group stated.

“We expect a mixed market mood at tomorrow (Thursday) `s session. Although, the mood is tilted towards profit taking,” analysts at SCM Capital stated.

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