ASI gains 0.03% on Consumer goods shares

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By Kayode Tokede

Trading in the domestic equities market was slightly positive yesterday with a gain of 0.03 per cent, following interests in Consumer Goods stocks like Nigerian Breweries and International Breweries.

The All Share Index (ASI) increased by 7.51 basis points, representing a growth of 0.03 per cent to close at 28,665.82 basis points.

Similarly, the market capitalisation rose by N4 billion to close at N14.983 trillion. Accordingly, Month-to-Date and Year-to-Date gains were also flat at 6.8 per cent.

Analysing by sectors, the Insurance (-1.2 per cent), Banking (-1.0 per cent), Oil & Gas (-0.9 per cent) and Industrial Goods (-0.2 per cent) indices declined, while the Consumer Goods (+1.9 per cent) index recorded the sole gain of the day.

The uptrend was impacted by gains recorded in large and medium capitalised stocks, amongst which are; Nigerian Breweries, Flour Mills of Nigeria, International Breweries, Julius Berger and UAC of Nigeria (UACN).

Analysts at Afrinvest Limited said “We are not optimistic of sustained bullish performance in subsequent trading sessions. However, investors may position ahead of third quarter (Q3) earnings releases.”

Market sentiment, as measured by the market breadth, was positive, as 23 stocks gained, relative to 17 losers. International Breweries recorded the highest price gain of 9.90 per cent, to close at N6.44, per share. United Capital followed with a gain 8.17 per cent to close at N3.84, while Nigerian Breweries rose by 4.67 per cent to close at N51.50, per share.

Flour Mills of Nigeria went up by 4.55 per cent to close at N23.00, while UACN appreciated by 4.48 per cent  to close at N7.00,  per share. On the other hand, Regency Alliance Insurance Company  led the losers’ chart by 8.33 per cent, to close at 22 kobo, per share. Cornerstone Insurance  followed with a decline of 4.76 per cent, to close at 60 kobo, while PZ Cussons Nigeria shed 4.65 per cent to close at N4.10, per share.

Mobil Nigeria lost 4.60 per cent to close at N178.30, while Aiico Insurance shed 4.49 per cent to close at 85 kobo, per share.

Also, the total volume traded rose by 3.48 per cent to 297.312 million shares, worth N2.927 billion, and traded in 4,736 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 72.432 million shares valued at N506.802 million. Zenith  Bank followed with 27.159 million shares worth N568.211 million, while UACN traded 22.197 million shares valued at N149.440 million.

Access Bank  traded 21.766 million shares valued at N170.537 million, while Mutual Benefits Assurance transacted 19.703 million shares worth N3.942 million.

“The equities market inched up today due to gains in Consumer Goods sector.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns amidst a low interest rate environment. Nonetheless, we reiterate that this may be a great period to pick up some quality names with a medium to long term investment horizon,” said analysts at InvestmentOne Research.