Equities market opens week with 0.08% gain


By Kayode Tokede

Trading on the Nigerian Stock Exchange (NSE) resumed on Monday on a positive note, following investors’ interest in shares of Zenith Bank, International Breweries (IB) and Flourmill.

The NSE All-Share Index rose by 30.56 basis points or 0.08 per cent to close at 40,150.78 basis points  from 40,120.22 basis points  on Friday.

Consequently,  the market capitalisation improved by N16 billion or 0.08 per cent to close at N20.994 trillion compared with N20.978 trillion on Friday.

Sector performances were positive today with the Oil & Gas (+0.85 per cent), Consumer Goods (+0.46 per cent) and Banking (+0.19 per cent) sectors all closing in the green, while Industrial sector closed flat.

The uptrend was also driven by price appreciation in medium and large capitalised stocks amongst which are: Ardova, Presco, Flour Mills, Berger Paints and Okomu Oil.

Consequently, market sentiment was positive with 28 gainers in contrast with 24 losers.

Ardova and May and Baker led the gainers’ chart in percentage terms, gaining 9.79 per cent each to close at N17.95 and N3.59 per share, respectively.

Berger Paints followed with 9.52 per cent to close at N8.05 per share.

Japaul Gold and Ventures rose by 9.28 per cent to close at N1.06, while Royal Exchange appreciated by 8.70 per cent to close at 25k.

Conversely, Cutix dominated the losers’ chart in percentage terms, losing 10 per cent to close at N2.16 per share.

BOC Gases trailed with 9.96 per cent to close at N11.39, while Caverton Offshore Support Group shed 7.07 per cent to close at N1.84 per share.

Linkage Assurance shed 4.69 per cent to close at 61k, while Deap Capital Management & Trust depreciated by 4.55 per cent to close at 21k per share.

The total volume of shares traded increased marginally by 0.72 per cent as investors bought and sold 335.69 million shares valued at N2.49 billion in 5,338 deals.

This was in contrast with 333.31 million shares worth N3.65 billion traded in 5,142 deals on Friday.

Transactions in the shares of Mutual Benefits Assurance topped the activity chart with 104.16 million shares valued at N31.04 million.

AXA Mansard Insurance followed with 26.34 million shares worth N30.44 million, while Lafarge Africa traded 14.38 million shares valued at N320.54 million.

Fidelity Bank sold 13.38 million shares worth N36.06 million, while Zenith Bank transacted 13.36 million shares worth N344.69 million.

Analysts at Investment One research stated that, “The equities market closed up today due to the 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.”

Also, GTI Securities Ltd. said, “We expect to see moderate investors’ reaction this week amid the low investment return in the fixed income segment of the capital market.”