NGX gains N138.94bn to maintain positive posture June ending

By Kayode Tokede

The Nigerian Exchange (NGX) Limited on Wednesday closed in a northward direction as market capitalisation gained by N139.94 billion to close trading activities for the first half (H1) of 2021.

The NGX All-Share Index (ASI) grew by 266.53 basis points, representing an increase of 0.71 per cent to close at 37,907.28 basis points from 37,640.75 basis points it opened for trading. Similarly, the overall market capitalisation value gained N139.94 billion to close at N19.760 trillion from N19.621trillion it closed on Tuesday.

Accordingly, the Month-to-Date and Year-to-Date losses moderated to -1.4percent and -5.9percent, respectively.

Sectoral performance was mixed, following gains in the Consumer Goods (+4.8percent) and Oil & Gas (+0.7per cent) indices and losses in the Insurance (-0.1percent) and Banking (-0.1percent) indices. The Industrial Goods index remained flat.

The market upturn was driven by price appreciation in large and medium capitalised stocks amongst which are Nestle Nigeria, MTN Nigeria Communications (MTNN), Flour Mills of Nigeria, Berger Paints and Vitafoam Nigeria.

Analysts at Afrinvest Limited said “In the next trading session, we expect a sustained positive performance.”

As measured by market breadth, market sentiment was positive, as 20 stocks gained, relative to 16 losers. Nestle Nigeria recorded the highest price gain of 10 percent to close at N1,540, per share. Ikeja Hotel followed with a gain 9.92 percent to close at N1.33, while Oando went up by 9.67 percent to close at N3.29, per share.

Lasaco Assurance rose by 9.49 percent to close at N1.50, while Linkage Assurance and Berger Paints gained 9.09 percent each to close at 84 kobo and N8.40, respectively, per share. On the other hand, BOC Gases Nigeria led the losers’ chart by 10 percent to close at N8.55, per share. Sovereign Trust Insurance followed with a decline of 7.14 percent to close at 26 kobo, while PZ Cussons Nigeria lost 7.08 percent to close at N5.25, per share.

Regency Alliance Insurance lost 6.12 percent to close at 46 kobo, while Chams, Consolidated Hallmark Assurance and Courteville Business Solutions shed 4.76 percent each to close at 20 kobo, 60 kobo and 20 kobo respectively, per share.

The total volume of trades declined by 6.7 per cent to 213.704 billion units, valued at N3.232 billion, and exchanged in 3,522 deals. Transactions in the shares of Wema Bank topped the activity chart with 18.306 million shares valued at N10.886 million. Oando followed with 15.619 million shares worth N47.761 million, while Mutual Benefits Assurance traded 15.101 million shares valued at N6.315 million.

Access Bank traded 13.743 million shares valued at N116.549 million, while United Bank for Africa (UBA) transacted 13.559 million shares worth N98.945 million.

According to analysts at Cordros securities, 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.”