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Hopes rise on improved corporate earnings as index climbs 0.4%

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Nigerian Stock Exchange

Expectations of improved corporate performance has continued to spur activities on the trading floor of the Nigerian Stock Exchange (NSE), as more blue chip stocks constituted the gainers’ chart yesterday, resulting to a further rise in index by 0.4 per cent.

Specifically, at the close of trading yesterday, market capitalisation of listed equities soared by N61billion from N15.882trillion recorded on Monday to N15.949trillion. Similarly, the All-share index which measures the performance of listed firms’ rose by 187.31 points or 0.4 per cent from 44,306.48 to 44,493.79.

Analysts at Investdata Consulting Limited, opined that with the expectations of more third quarter (Q3) numbers on the rally, the volatility would continue, while portfolio reshuffling and repositioning for the expected quarterly and full year reports are underway.

Specifically, the Chief Research Officer of Investdata Consulting, Ambrose Omodion, said: “The renewed buying market as a result of positive sentiments was revealed by institutional money flow index that turned up after last Friday’s trading session. This is as foreign investors continued to position in the nation’s equities to balance their portfolios based on the frontier MSCI index as emerging markets remain the attraction of foreign fund managers.

“This is also due to the current low stock valuations in an economy that has recovered from recession and already on the growth path as reflected in the continued positive economic data. However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.

“We advise investors to allow the numbers to guide their decisions, while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

“It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases; know the cycles in order to manage your trading and investing risk.”

Further breakdown of yesterday’s transactions showed that Guinness emerged the day’s highest price gainer with 3.00 kobo to close at N113.00 per share, while Betaglass followed with 2.95 kobo to close at N62.35 per share.

Dangote Cement added 2.00 kobo to close at N270.00 per share. Presco appreciated by 1.00 kobo to close at N71.00 per share. Stanbic IBTC also garnered 1.00 kobo to close at N46.00 per share.

However, Nestle led others on the losers’ chart with 30.00 kobo to close at N1470 per share while Seplat followed with 7.60 per share. Cement Company of Northern Nigeria lost 0.40 kobo to close at N17.60 per share. Unilever depreciated by 0.30 kobo to close at N44.20 per share. Air Service dropped 0.25 kobo to close at N5.35 per share.

TransNational Corporation dominated in volume terms with 160 million shares worth N393million, while Diamond Bank followed with 99 million units valued at N318million. Skye Bank accounted for 93 million units valued at N141million.

Honeywell Flourmills traded 87 million shares worth N260million. First City Monument Bank also exchanged 74 million units valued at N240million.

On the whole, investors exchanged 876 million shares valued at over N15.9trillion in 8,780 deals.


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Nigerian Stock Exchange
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