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Investors repositioning ahead of 2019 dividend lifts NSE’s index


Nigerian Stock ExchaNge (NSE)

As investors reposition ahead of 2019 full year dividend payout, the Nigerian equities market rebounded at the reopening of transactions yesterday, causing the All-Share Index to advance by 0.41 per cent.
Specifically, the All Share Index (ASI) of the Nigerian Stock Exchange (NSE), rose by 107.76 points or 0.41 per cent to 26401.06 points. Accordingly, investors gained N53 billion in value as market capitalisation rose to N12.852 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which were; Stanbic IBTC Holdings, Guaranty Trust Bank, United Bank for Africa (UBA), Cement Company of Northern Nigeria (CCNN), and Access Bank.Analysts at Imperial Assets Management said: “This week, we expect equity market activity to be driven by speculative trading as well as the tighter regulations in the primary market side of the Treasury Bills, which excludes non-bank’s private and corporate investors from participation in Open Market Operation (OMO) auctions.
“We equally expect increased positioning activity ahead of full year, 2019 dividend announcement.”Also, Investdata Consulting Limited, said: “With only a quarterly earnings remaining, market players are expected to reposition and balance their portfolios ahead of full-year earnings in the first quarter (Q1) of 2020.
“This will, however, be based on their interpretation of the recently released scorecards and changes that will keep the market oscillating.
The Q3 numbers are expected to strengthen market fundamentals, given that stock prices are low and the business environment will likely lookup.”
Market breadth closed positive as 18 stocks recorded gains relative to 13 losers. Champion Breweries recorded the highest price gain of 10 per cent to close at 99 kobo per share. Honeywell Flour Mills followed with 9.47 percent to close at N1.04, and UBA by 8.62 per cent to close at N6.30, per share.
Fidelity Bank rose 6.86 percent to close at N1.87, while Nigerian Aviation Handling Company (NAHCO) appreciated by 6.38 per cent to close at N2.50, per share.On the other hand, Fidson Healthcare led the losers’ chart by 10 per cent to close at N3.60, per share. Unilever Nigeria followed with 9.93 per cent to close at N24.05 per share.
International Breweries shed 9.92 per cent to close at N11.35 per share.Capital Hotel lost 9.84 per cent to close at N2.75, and MRS Oil Nigeria shed 9.73 per cent to close at N15.30, per share. Total volume traded increased by 45.89 per cent to 368.179 million shares worth N2.77 billion, traded in 3,473 deals. Transactions in the shares of Access Bank topped the activity chart with 80.57 million shares valued at N650.01 million.
Law Union and Rock Insurance followed with 79.20 million shares worth N33.32 billion, while UBA traded 55.44 million shares at N348.52 million.
Zenith Bank traded 45.53 million shares valued at N777.18 million, while Lafarge Africa transacted 13.66 million shares worth N191.30 million.

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