Nigerian equities staged a considerable recovery on Monday as the National Bureau of Statistics (NBS) released its latest economic report showing that the national economy doubled its growth rate in the third quarter.
Benchmark indices at the Nigerian Stock Exchange (NSE) indicated a day-on-day average gain of 0.24 per cent, equivalent to net capital gain of N31 billion. The rally nudged the average year-to-date return for Nigerian equities to 36.90 per cent.
The NBS on Monday reported a Gross Domestic Product (GDP) growth of 1.4o per cent in third quarter 2017, higher than the revised growth rate of 0.72 per cent recorded in second quarter of the year.
The rally set the stock market on a positive trajectory as the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) started its two-day meeting on Monday. Most analysts expected that the CBN would retain its monetary policy tools and rates.
Aggregate market value of all quoted equities on the NSE rose from its opening value of N12.774 trillion to close at N12.805 trillion. The All Share Index (ASI)-the value-based common index that tracks share prices at the Exchange rose from its opening index of 36,703.58 points to close at 36,792.60 points.
The market rally was driven largely by large-cap stocks in the consumer goods and banking sectors. The NSE Banking Index and NSE Consumer Goods Index recorded above-average gain of 0.5 per cent each while the NSE Insurance Index rose by 0.4 per cent. However, the NSE Oil & Gas Index dropped by 1.1 per cent while the NSE Industrial Goods Index closed flat.
Nestle Nigeria-Nigeria’s highest-priced stock, led 16 other advancers with a gain of N4.87 to close at N1, 255.90. PZ Cussons Nigeria followed with a gain of N2.30 to close at N24.79. Nascon Allied Industries appreciated by N1.39 to close at N15.89. Zenith Bank rose by 86 kobo to close at N24.98. Dangote Sugar Refinery added 62 kobo to close at N14.95 per share. Dangote Flour Mills added 29 kobo to close at N9.28 while Eterna rose by 18 kobo to close at N3.94 per share.
On the negative side, Forte Oil led 14 other decliners with a loss of N4.73 to close at N43.89. International Breweries followed with a drop of 95 kobo to close at N50.85. Unilever Nigeria lost 50 kobo to close at N37. Guaranty Trust Bank dipped by 40 kobo to close at N42.60. Nigerian Breweries dropped by 30 kobo to close at N138.50 per share while UAC of Nigeria dipped by 20 kobo to close at N17 per share.
Total turnover stood at 208.70 million shares valued at N2.45 billion in 2,993 deals. The three most active stocks were Custodian and Allied Insurance, with 40.45 million shares; FBN Holdings, 27.45 million shares and Fidelity Bank, which recorded a turnover of 23.46 million shares.
Analysts at FSDH Securities stated that the positive GDP growth report stimulated investors’ appetite and further reinforced the positive mid-term outlook for the market.
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