Equities market gains 0.41% as positive performance resurface

By Kayode Tokede

The equities market of the Nigerian Stock Exchange (NSE)  on Tuesday gained by 0.41 per cent as positive performance resurfaced, following buying interest in Dangote Cement and 10 others.

The NSE All-Share Index (ASI) grew by 158.97 basis points, representing an increase of 0.41 per cent to close at 38,720.81 basis points. While the overall market capitalisation value gained N83 billion to close at N20.259 trillion on Tuesday.

Sector performances were positive with Industrial (+1.70 per cent) and Consumer Goods (+0.23 per cent) sectors closing in the green, while the Banking (-3.51 per cent) sector printed negatively. The Oil & Gas sector closed flat.

Meanwhile, yesterday’s market gain was driven by price appreciation in large and medium capitalized stocks amongst which are; Dangote Cement, Guinness Nigeria, MTN Nigeria Communications (MTNN), Vita Foam Nigeria and GlaxoSmithKline Consumer Nigeria.

As measured by market breadth, market sentiment was negative, as 20 stocks lost relative to 11 gainers. Guinness Nigeria and Regency Alliance Insurance recorded the highest price gain of 10 per cent each, to close at N25.30 and 33 kobo, respectively, while Jaiz Bank followed with a gain 9.68 per cent to close at 68 kobo, per share.

Vitafoam Nigeria went up by 5.44 per cent to close at N7.75, while Livestock Feeds appreciated by 3.83 per cent  to close at N1.90, per share.

On the other hand, Wapic Insurance led the losers’ chart by 9.09 per cent to close at 50 kobo, per share. Africa Prudential followed with a decline of 8.26 per cent to close at N5.00, while Fidelity Bank declined by 6.69 per cent to close at N2.23, per share.

Ecobank Transnational Incorporated (ETI) lost 5.83 per cent to close at N4.85, while Guaranty Trust Bank shed 4.84 per cent to close at N28.50,  per share.

Also, the total volume traded rose by 19.7 per cent to 220.857 million shares, worth N4.206  billion, and traded in 4,192  deals.

Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 24.407 million shares valued at N171.573 million.

Access Bank followed with 19.132 million shares worth N148.117 million, while Mutual Benefits Assurance traded 17.877 million shares valued at N6.852 million.

AXA Mansard Insurance traded 17.446  million shares valued at N17.280 million, while Guaranty Trust Bank transacted 16.33 million shares worth N470.572 million.

On market performance, analysts at Afrinvest Limited said, “We anticipate that gains would not be sustained in subsequent trading sessions as sentiment towards the market remains weak.”

According to analysts at Investment One research, “The equities market closed up today due to the gains recorded in Industrial and Consumer Goods 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.”