Investors gain N199.24bn, as NSE ASI closes above 39,000bpts

By Kayode Tokede

The Nigerian Stock Exchange (NSE) equities market advanced by 0.98 per cent amid renewed bargain hunting activity.

Specifically, the market witnessed investors react positively to the full year 2020 corporate releases and dividend declaration as stocks such as Dangote Cement and Stanbic IBTC Holdings benefited from investors’ patronage.

In summary, the All-Share Index (ASI) appreciated by 380.81 basis points , representing an increase of 0.98 per cent to close at 39,085.78 basis points, while the overall market capitalisation value gained N199.2 billion to close at N20.450 trillion.

The equities market gain was driven by price appreciation in large and medium capitalised stocks amongst which are; Dangote Cement, Stanbic IBTC Holdings, MTN Nigeria Communications (MTNN), Guinness Nigeria and Unilever Nigeria.

Sector performances were positive with Consumer Goods (+0.73per cent), Oil & Gas (+0.68 per cent) and Industrial (+0.65 per cent) sectors closing in the green, while the Banking sector (-0.21 per cent) was the lone loser.

Market sentiment, as measured by market breadth, was positive as 21 stocks gained, relative to 17 losers. Stanbic IBTC Holdings recorded the highest price gain of 9.99 per cent to close at N48.45, per share. NPF Microfinance Bank  followed with a gain 9.60 per cent to close at N1.94 and Cornerstone Insurance rose by 8.93 per cent to close at 61 kobo, per share.

Guinness Nigeria appreciated by 8.76 per cent to close at N27.30, while Oando gained 8.68 per cent to close at N3.38, per share. On the other hand, MRS Oil Nigeria led the losers’ chart by 9.70 per cent to close at N12.10, per share. Wapic Insurance followed with a decline of 9.09 per cent to close at 50 kobo, while Lafarge Africa shed 7.11 per cent to close at N20.90,  per share.

Africa Prudential shed 5.45 per cent to close at N5.20, while Livestock Feeds  depreciated by 4.74 per cent to close at N1.81, per share.

Meanwhile, the total volume of trades declined marginally by 11.8 per cent to 361.903 million units, valued at N5.702 billion, and exchanged in 4,018 deals. Transactions in the shares of Union Bank of Nigeria (UBN) topped the activity chart with 79.346 million shares valued at N420.533 million. Guaranty Trust Bank  followed with 72.620 million shares worth N2.259 billion, while Veritas Kapital Assurance traded 50.247 million shares valued at N10.525 million.

Ekocorp Plc traded 20 million shares valued at N120 million, while Zenith  Bank transacted 16.675 million shares worth N367.031 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 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.”

Also, analysts at Afrinvest Limited stated “In the subsequent trading session, we expect profit-taking in the local bourse.”