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Buy Interest In High Cap Stocks Upturns Market Performance



The Nigerian equities market rebounded Week-on-Week (W-o-W) by 0.23 per cent amid bargain hunting in high capitalised stocks by investors.

The overall market performance measure, Nigerian Stock Exchange, All-Share Index (NSE-ASI), went up by 75.27 points or 0.23 per cent to close at 32,200.21 points. Similarly, market capitalisation increased by N27 billion to close at N11.756 trillion.

Performances across sectors were bearish. The Industrial Goods sector led decliners after losing 3.81 per cent W-o-W, following profit taking on Lafarge Africa and Cement Company of Northern Nigeria (CCNN). Similarly, the Insurance and Banking indices shed 2.32 per cent and 1.96 per cent respectively W-o-W on the back of sell-offs in Continental Reinsurance, Mutual Benefit Assurance, Guaranty Trust Bank and Ecobank Transnational Corporation (ETI). On the flipside, the Consumer Goods and Oil & Gas indices rose by 1.65 per cent and 1.27 per cent respectively W-o-W, following investors’ interest in Nestle Nigeria, Guinness Nigeria, Dangote Flour and Seplat Petroleum Development Company.

Market breadth for the week closed on negative side with 27 gainers and 39 losers. UACN and NPF Microfinance Bank led the gainers table by 11.11 per cent, each to close at N10 and N1.50, respectively, per share. Presco followed with a gain of 10.69 per cent to close at N66.25, while Nigerian Aviation Handling Company rose by 10 per cent to close at N3.63 per share. On the other side, Mutual Benefits Assurance led the decliners table by 23.33 per cent to close at 23 kobo per share. Flour Mills Nigeria followed with a loss of 16.76 per cent to close at N15.40 and Lafarge Africa declined by 14.29 per cent to close at N15 per share.

Overall, a total turnover of 1.079 billion shares worth N18.196 billion in 14,372 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.267 billion shares valued at N20.346 billion that exchanged hands previous week in 15,088 deals.

Outlook For This Week

This week, following the conclusion of the relatively positive 9 months corporate earnings season, capital market analysts expected the local bourse to close in red territory amid sell pressure by speculators despite the attractive valuations and dividend yields.

Analysts at Cordros Capital stated that “despite recent gains, we reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns surrounding the 2019 elections, and absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term.

Analysts at Afrinvest Limited also said that “despite the mild uptick in performance last week, evidenced by improvement in market breadth, we believe overall market sentiment remains weak due to a general lack of drivers to sustain the market in the positive region.”



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