Equities market closes flat over Investors sentiment trading


By Kayode Tokede

The equities market segment of the Nigerian Stock Exchange (NSE) closed flat on Wednesday due to cautious trading.

Specifically, the All-Share Index closed at 28,344.33 basis points compared with 28,344.04 basis points recorded on Tuesday.

Also, the market which opened trading at N14.814 trillion appreciated by N1 billion to close at N14.815 trillion.

The equities market Year-to-Date (YTD) returns currently stands at +5.60per cent.

Sector performances were positive today as the Banking (+0.46 per cent), Consumer Goods (+0.21 per cent) and Industrial (+0.15per cent) sectors all closed positively, while the Oil & Gas (-0.17 per cent) sector was the lone loser.

The performance was impacted by gains recorded in large and medium capitalised stocks, amongst which are; Guinness, Guaranty Trust Bank, Eterna, Lafarge Africa and Africa Prudential.

The market breadth closed positive with 14 gainers against 11 laggards.

Eterna drove the gainers’ chart in percentage terms, improving by 9.82 per cent to close at N4.81per share.

Academy Press trailed with 7.41 per cent to close at 29k, while Africa Prudential rose by 5.75 per cent to close at N5.70 per share.

Cornerstone Insurance and PZ Cussons appreciated by five per cent each, to close at 63k and N4.20, per share respectively.

Conversely, eTranzact led the laggards’ chart in percentage terms, dropping 9.91 per cent to close at N1.91 per share

Wema Bank dipped 5.17 per cent to close at 55k, while Courteville shed 4.76 per cent to close at 20k per share.

FCMB Group lost 3.83 per cent to close at N2.26, while Ardova depreciated by 3.61 per cent to close at N12 per share.

However, the total volume traded decreased by 59.24 per cent as investors bought and sold 218.43 million shares worth N3.14 billion traded in 3,896 deals.

This was in contrast with a total of 535.83 million shares valued at N5.02 billion exchanged in 4,498 deals on Tuesday.

Transactions in the shares of Zenith Bank topped the activity chart with 53.05 million shares worth N1.06 billion.

United Bank for Africa followed with 33.46 million shares valued at N223.40 million, while Guaranty Trust Bank sold 25.12 million shares worth N753.18 million.

FBN Holdings transacted 13.68 million shares valued at N84.53 million, while Wema Bank accounted for 9.11 million shares worth N4.96 million.

According to analysts at InvestmentOne research, “The equities market closed up today on the back of gains recorded in most sectors.

“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.”