NSE LIVE! Widespread bargain-hunting boosts equities

With nearly three advancers to a decliner, widespread bargain-hunting lifted the Nigerian equities from the red zone to the first gain in four trading sessions.

The average benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI)-a value-based common index that tracks prices of all quoted shares, recorded a modest gain of 0.02 per cent from 26,948.43 points to close at 26,953.05 points.
Total market value of all quoted equities also rose marginally from N9.265 trillion to close at N9.267 trillion. With 29 gainers to 12 losers, the market performance was driven by both widespread bargain-hunting and improved appetite for large-cap stocks. Average year-to-date return dropped marginally to -22.23 per cent.

Forte Oil Plc, which yesterday announced that it had been awarded contract to lift crude oil by the Federal Government of Nigeria, led the rally with a gain of N12.10 to close at N254.10, representing an increase of 5.0 per cent. In a statement, Forte Oil stated that it was awarded the crude oil lifting contract by the Nigerian National Petroleum Corporation (NNPC) after it bid successfully scaled through the tender by the national oil corporation.

Forte Oil’s announcement reverberated in the oil and gas sector. Another oil major, Total Nigeria recorded the second highest gain, in value terms, with a gain of N7.20 to close at N152.20, representing an increase of 4.97 per cent. Oando, another oil major, rose by 25 kobo or 4.80 per cent to close at N5.46 per share.

The gains by the oil majors pushed the NSE Oil and Gas Index to the top with above average gain of 3.0 per cent. The NSE Insurance Index rose by 0.8 per cent. The NSE Industrial Goods Index appreciated by 0.3 per cent while the NSE Banking Index improved by 0.1 per cent.

Also, on the top gainers’ list, Unilever Nigeria rose by N1.45 to close at N45.50. Okomu Oil Palm added N1.34 to close at N28.34. Lafarge Africa rose by N1.10 to close at N92.44 per share. Seven-Up Bottling Company chalked up 48 kobo to close at N182. PZ Cussons Nigeria rose by 40 kobo to close at N29.69. Cement Company of Northern Nigeria added 37 kobo to close at N7.77 while Berger Paints rose by 30 kobo to close at N10 per share.

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“…the positive close today was driven by bargain hunting by investors however, this is not sufficient to persistently lift the market, hence we anticipate some more marginal gains going forward. We however maintain that investors keep a medium to long term investment horizon,” Afrinvest Securities stated.

Total turnover stood at 172.71 million shares valued at N2.62 billion in 2,485 deals. Champion Breweries was the most active stock with a turnover of 36.72 million shares worth N128.89 million. United Bank for Africa followed with a turnover of 15.34 million shares worth N55.76 million while Zenith Bank placed third with a turnover of 14.82 million shares worth N207.52 million.

However, Mobil Oil Nigeria led the losers with a loss of N6.57 to close at N125.84. Nigerian Breweries followed with a loss of N2.23 to close at N118.79. UAC of Nigeria dropped by N1.07 to close at N20.43. Dangote Cement declined by N1.05 to close at N155.05. Union Bank of Nigeria dropped by 29 kobo to close at N5.70 per share. Zenith Bank lost 9.0 kobo to close at N13.91 while Skye Bank dropped by 8.0 kobo to close at N1.24 per share.

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