Investors gain N87.69bn as market closes above 39,000bpts

By Kayode Tokede

Investors on the equities market of Nigerian Exchange Limited on Tuesday closed trading activities on a positive note to extend its bullish run to three consecutive trading sessions, as the market performance indicators grew by 0.43 per cent.

The price appreciation was sustained by investors’ buy-interests in bellwethers stocks. The All-Share Index (ASI) grew by 167.56 basis points, representing a growth of 0.43 per cent to close at 39,015.58 basis points, while the overall market capitalisation value gained N88 billion to close at N20.419 trillion.

Sector performance was somewhat positive with the Banking (+1.75 per cent) and Consumer Goods (+0.38 per cent) sectors closing up on Tuesday, while the Oil & Gas (-0.03 per cent) sector closed negative. Industrial sector printed on a flat note.

The market gain was driven by price appreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Zenith Bank, Guaranty Trust Bank, PZ Cussons Nigeria and Ardova Plc.

As measured by market breadth, market sentiment was positive, as 24 stocks gained, relative to 13 losers. Honeywell Flour Mill and PZ Cussons Nigeria recorded the highest price gain of 10 per cent each, to close at N1.30 and N4.50, respectively, while Sovereign Trust Insurance  followed with a gain 8 per cent to close at 27 kobo, per share.

NEM Insurance rose by 7.50 per cent to close at N2.15, while John Holt appreciated by 5.88 per cent to close at 54 kobo, per share. On the other hand, Royal Exchange led the losers’ chart by 10 per cent, to close at 36 kobo, per share. Portland Paints & Products Nigeria followed with a decline of 9.90 per cent to close at N2.64, while FTN Cocoa Processors declined by 8.89 per cent to close at 41 kobo, per share.

Chams Plc shed 4.55 per cent to close at 21 kobo, while Livestock Feeds depreciated by 2.70 per cent to close at N1.80, per share.

However, the total volume of trades decreased by 33.35 per cent to 339.018 million units, valued at N2.703 billion, and exchanged in 4,203 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 125.257 million shares valued at N265.641 million. Zenith Bank followed with 26.178 million shares worth N574.956 million, while UAC of Nigeria (UACN) traded 25.824 million shares valued at N280.336 million.

Guaranty Trust Bank traded 22.762 million shares valued at N683.072 million, while FBN Holdings (FBNH) transacted 21.124 million shares worth N161.578 million.

Analysts at InvestmentOne Research stated that, “The equities market closed up today due to the gains recorded in the Banking and Consumer Goods sectors 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.”

Analysts at Afrinvest Limited stated that, “Despite the positive performance in the last two trading sessions, we maintain our bearish outlook given the expected rise in marginal rates at the bond auction tomorrow.”