Investors gain N4.17bn as equities market opens week positive

By Kayode Tokede

Investors on the equities market of the Nigerian Exchange Limited (NGX) gained N4.17billion on Monday over gains in Stanbic IBTC Holdings and 26 others.

In summary, the overall market capitalisation value gained N4 billion to close at N19.923 trillion, while the NGX All-Share Index (ASI) increased by eight basis points, representing a gain of 0.02 percent to close at 38,220.01 basis points.

Sector performances were mixed today with the Banking (+0.63per cent) and Oil and Gas (+0.51 percent) sectors closing in the green, while the Consumer Goods (-0.39 percent) and Industrial (-0.06 per cent) sectors closed negatively.

The market upturn was driven by price appreciation in large and medium capitalised stocks amongst which are; Stanbic IBTC Holdings, UPDC Real Estate Investment Trust, Cutix, NCR Nigeria and Africa Prudential.

Investors sentiment, as measured by market breadth closed positive as 27 stocks gained while 16 stocks lost. Cutix recorded the highest price gain of 10 percent to close at N3.30, per share. NCR Nigeria followed with a gain 9.69 per cent to close at N2.49, while Regency Alliance Insurance went up by 9.52 per cent to close at 46 kobo, per share.

UACN Property Development Company rose by 9.30 per cent to close at 94 kobo, while Wapic Insurance gained 9.26 percent to close at 59 kobo, per share.

On the other hand, Red Star Express led the losers’ chart by 9.81 percent to close at N3.31, per share. Associated Bus Company followed with a decline of 8.11 percent to close at 34 kobo, while NPF Microfinance Bank lost 6.98 per cent to close at N1.60, per share.

Presco lost 6.04 per cent to close at N70.00, while Chams Plc shed 4.76 percent to close at 20 kobo, per share.

The total volume of trades rose by 35.1 percent to 282.625 million units, valued at N1.869 billion, and exchanged in 4,788 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 28.094 million shares valued at N64.532 million.

Wema Bank followed with 19.638 million shares worth N14.419 million, while Universal Insurance traded 18.025 million shares valued at N3.605 million.

FCMB Group traded 14.823 million shares valued at N45.859 million, while Sovereign Trust Insurance transacted 14.409 million shares worth N3.894 million.

This week, analysts at United Capital Plc expected some profit-taking on stocks that rallied in the week, saying that “However, we believe half-year earnings will dictate investor sentiments on the bourse.”

Analysts at Afrinvest Limited said “In the coming trading session, we expect to see profit-taking activities dominating the market in the absence of any positive catalyst.”

According to analysts at Investment One research, “The equities market closed up today due to the gains recorded in the Banking and Oil & gas sectors.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”