Bargain-hunting triggers NSE rebound as index rises by 0.6%

The bears finally eased their hold on the Nigerian equity market yesterday, following price gains recorded by major highly capitalised (high cap) stocks, as the All Share Index (ASI) appreciated marginally by 0.6 per cent.

Specifically, at the close of transactions on the Nigerian Stock Exchange (NSE) yesterday, the All Share Index (ASI) rose by 179.02 absolute points to close at 32,381.00 points, representing an increase of 0.6 per cent.

Similarly, the market capitalisation gained N66 billion to close at N11.822 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Forte Oil, FBN Holdings, United Bank for Africa (UBA), and Zenith Bank.

Analysts at Afrinvest Limited, said: “the rebound in the market yesterday was in line with our expectation, although we expect this to be short-lived, as sell pressures persist.”

Also, analysts at APT Securities and Funds Limited, said: “the market shuffles in between sell-offs and mild bargain-hunting, as outlook remains negative in the near term. We therefore maintain cautious stand point as foreign investors’ response to political risk lingers.”

Market breadth closed positive, recording 27 gainers against 18 losers. First Aluminium recorded the highest price gain of 10 per cent to close at 33 kobo per share. Prestige Assurance followed with a gain of 9.62 per cent to close at 57 kobo, while
Royal Exchange rose 9.52 per cent to close at 23 kobo per share.

Unity Bank appreciated by 9.41 per cent to close at 93 kobo, while Union Diagnostic & Clinical Services rose 9.38 per cent to close at 35 kobo per share.

On the other hand, Red Star Express led the losers’ chart by 9.09 per cent to close at N4.50, while Standard Alliance Insurance, and Cornerstone Insurance, followed with a decline of 8.70 per cent each to close at 21 kobo per share respectively.

Sovereign Trust Insurance shed 8.33 per cent to close at 22 kobo, while Universal Insurance depreciated by eight per cent to close at 23 kobo per share.

The total volume traded appreciated by 67.9 per cent to 269.81 million shares worth N2.65 billion, and traded in 4,705 deals.

Transactions in the shares of Access Bank topped the activity chart with 84.95 million shares valued at N679.77 million. Skye Bank followed with 22.91 million shares worth N14.69 million, while Zenith Bank traded 16.43 million shares valued at N338.36 million.

Sterling Bank traded 11.67 million shares at N16.92 million, and International Breweries transacted 10.29 million shares worth N299.71 million.