Ahead inauguration ceremony, investors in equities market gain N489.9bn

Temitope Adebayo

Ahead of the May 29, 2019 inauguration ceremony of elected political officers, investors in the equities market of the Nigerian Stock Exchange (NSE) have recorded an increase of N489.91 billion in one trading day, which was impacted by gains recorded in large and medium capitalized stocks.

The NSE ASI gained 1112.29 basis points, representing a growth of 3.68 per cent to close yesterday at 31,307 basis points from 30,194.71 basis points reported on Monday.

The value of listed stocks (market capitalization) increased by N489.91 billion or 3.68 per cent from N13.302 trillion it opened for trading to N13.791 trillion.

Market breadth closed positive, recording 30 gainers and 6 losers. Hence, the year to date performance of the NSE ASI moderated to 0.39 per cent from 3.92 per cent.

However, performance across sectors was equally bullish as all the indices under coverage closed positive.

The Banking index led gainers, up 6.8 per cent due to bargain hunting in Guaranty Trust Bank (5.4 per cent) and Zenith Bank (9.1 per cent).

The Oil & Gas index followed closely, rising four per cent following price appreciation in Seplat Petroleum Development (5.8 per cent) and Oando (8.1 per cent).

Similarly, the Industrial and Consumer Goods indices rose 3.2 per cent and 2.2 per cent respectively on the back of gains in Dangote Cement (5.0 per cent) and Nestle Nigeria (3.6 per cent).

In the same vein, buying interest in MTN Nigeria (two per cent) and Wapic Insurance (5.1 per cent) buoyed the AFR-ICT and Insurance indices higher by two per cent and 0.4 per cent respectively.

Activity level strengthened as volume and value traded surged by 137.1 per cent and 321.6 per cent to 344.3 million units and N7.3 billion respectively.

The top traded stocks by volume were Guaranty Trust Bank (67.1 million units), Zenith Bank (52.1 million units) and FBN Holdings (44.7 million units) while Guaranty Trust Bank (N2.1 billion), Dangote Cement (N1.3 billion) and Zenith Bank (N1 billion) led the value chart.

Ecobank Transnational Incorporated led the gainers’ table, gaining N1.10 to close at N12.10 per share. United Bank for Africa Plc followed with a gain of N0.55 to close at N6.25, while Courteville Business Solutions Plc garnered N0.02 to close at N0.23 per share.

On the other hand Eterna Plc topped the losers’ table with a loss of N0.35 to close at N3.65 per share. PZ Cussons Nigeria Plc trailed with a loss of N0.40 to close at N8.10, while Nigerian Aviation Handling Company Plc dipped by N0.12 to close at N3.18 per share.

Analysts at APT Securities and Fund Limited said that, “The market rebounded at the end of today’s trades as anticipated. We therefore advise for medium to long term positioning on stocks that are fundamentally justified and have shed weight significantly as the market is most likely about take off along the green region in anticipation of positive economic reforms which is expected to have an ample effect on the equities market and the economy at large.”