Stock market rebounds amid renewed bargain-hunting
Following renewed bargain-hunting in most highly capitalized stocks, the five-day bearish run in the Nigerian stock market was halted at the end of transactions yesterday, as the All-share index appreciated marginally by 0.2 per cent.
Yesterday, the All-share (ASI) grew by 46.92 absolute points, representing an increase of 0.15 percent, closing at 31,360.28 points. Similarly, the market capitalisation grew by N18 billion to close at N11.695 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Chemical & Allied Products (CAP), Okomu Oil, Eterna and Sterling Bank.
Analysts at Afrinvest Limited said; “Yesterday’s rebound in the domestic equities market was in line with our expectations and in our view, sustained bargain-hunting will further buoy market performance over the near term.”Codros Capital Limited said: “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term.
However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.”
Market breadth closed negative, recorded 13 gainers against 18 losers. CAP recorded the highest price gain of 10 per cent, to close at N37.40 per share. Sterling Bank followed with a gain of 9.77 per cent to close at N2.36, while Eterna rose by 9.09 per cent to close at N4.80, per share.
Consolidated Hallmark Insurance (CHI) appreciated by 7.41 per cent to close at 29 kobo, while Lasaco Assurance rose 6.45 per cent to close at 33 kobo per share.On the other hand, Regency Alliance Insurance led the losers’ chart by 7.69 per cent, to close at 24 kobo, per share. Africa Prudential shed 7.52 per cent to close at N4.55, while Prestige Assurance depreciated by 7.41 per cent to close at 50 kobo, per share.
Dangote Flour Mills declined by five per cent to close at N9.50 and Guinness Nigeria shed 4.69 per cent to close at N64 per share.
The total volume traded appreciated by 72.08 per cent to 377.49 million shares, worth N2.26 billion, and traded in 3,273 deals.Transactions in the shares of Diamond Bank topped the activity chart with 113.6 million shares valued at N283.36 million. Chams followed with 72.15 million shares worth N14.43 million.FBN Holdings traded 71.53 million shares valued at N586.22 million.Zenith Bank traded 14.59 million shares valued at N321.4 million, while United Capital transacted 12.85 million shares worth N42.36 million.