Investors gain 0.02% amid negative market breadth

By Kayode Tokede

Activities on the Nigerian stock Exchange (NSE) on Wednesday closed on a positive note to halt the four consecutive days of bearish run, as market performance indices grew marginally by 0.02 per cent.

The performance was driven by investors renewed positive sentiments in blue-chip stocks like Nestle Nigeria, MTN Nigeria Communications (MTNN) and nine others.

In summary, the All-Share Index (ASI) grew by 7.42 basis points, representing an increase of 0.02 per cent to close at 38,774.03 basis points, while the overall market capitalisation value gained N4 billion to close at N20.287 trillion.

Sector performance was negative with the Banking (-3.12 per cent), Oil & Gas (-0.28 per cent) and Industrial (-0.14 per cent) sectors all closing in the red, while Consumer Goods (+1.88 per cent) was the lone gainer.

The market gain was driven by price appreciation in large and medium capitalised stocks amongst which are; Nestle Nigeria, Flour Mills of Nigeria, MTNN, Stanbic IBTC Holdings and Africa Prudential.

Analysts at Afrinvest Limited said that “In subsequent trading sessions, we anticipate that the equities market will sustain a positive momentum.”

However, the market breadth closed negative, as 27 stocks lost relative to 14 gainers. Jaiz Bank recorded the highest price gain of 10 per cent to close at 66 kobo, per share. The Initiates followed with a gain 9.52 per cent to close at 46 kobo and Royal Exchange rose by 8.33 per cent to close at 39 kobo, per share.

Japaul Gold and Ventures appreciated by 8.16 per cent to close at 53 kobo, while Consolidated Hallmark Insurance gained 6.90 per cent to close at 31 kobo, per share.

On the other hand, Sterling Bank led the losers’ chart by 9.47 per cent to close at N1.53, per share. Pharma Deko followed with a decline of 9.46 per cent to close at N1.34, while Prestige Assurance shed 8.70 per cent to close at 42 kobo,  per share.

Ardova shed 6.91 per cent to close at N14.15, while Livestock Feeds  depreciated by 5.88 per cent to close at N1.76, per share.

The total volume of trades increased by 58.7 per cent to 356.461 million units, valued at N4.193 billion, and exchanged in 6,130 deals. Transactions in the shares of Zenith Bank topped the activity chart with 55.031 million shares valued at N1.156 billion. Access Bank followed with 38.385 million shares worth N308.553 million, while Transnational Corporation of Nigeria (Transcorp) traded 31.860 million shares valued at N24.899 million.

Guaranty Trust Bank  traded 29.208 million shares valued at N819.08 million, while Mutual Benefit Assurance transacted 25.449 million shares worth N10.021 million.

Analysts at Investment One research stated that, “The equities market closed up today due to the gains recorded in Consumer Goods sector and MTNN.

“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.”