Stock market index rises by 0.14% as analysts predict gloomy outlook
Transactions on the Nigerian Stock Exchange (NSE) re-opened in an upbeat yesterday, occasioned by price gains in some blue chip stocks, as market capitalisation appreciated marginally by N19 billion.
Specifically, at the close of trading, the All Share Index (ASI) rose by 39.28 points or 0.14 per cent to 27,565.09 points. This resulted in investors gaining N19 billion in value as market capitalisation went up to N13.410 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Cement Company of Northern Nigeria (CCNN), Unilever Nigeria, United Bank for Africa (UBA) and Zenith Bank.
Analysts at Afrinvest Limited said the bearish run in the equities market is likely to resurface amid weak macro-economic environment, which has continued to cast a shadow on investor sentiment.
Also, Imperial Asset Managers, said: “This week, we expect bargain hunting on stocks that have witnessed significant price depreciation in recent past to still be at fore.
“Overall, we expect developments in the fiscal space to weigh in on sentiments, as investors assess the direction of recent policy pronouncements.”
From Vetiva Securities Limited perspective: “With the upward trend recorded on some market bellwethers over the last two trading, we expect investors to resort to profit taking action on some of the stocks that have recorded price appreciation.”
Further breakdown of yesterday’s trading showed that market breadth closed positive as 22 stocks recorded gains relative to 14 losers. CCNN recorded the highest price gain of 9.78 per cent, to close at N17.40, per share.
Cornerstone Insurance followed with a gain 9.52 per cent to close at 23 kobo, while UBA appreciated by 5.98 per cent to close at N6.20, per share. Nestle Nigeria went up by 5.94 per cent to close at N1, 319, while GlaxoSmithKline Consumer Nigeria appreciated by 3.47 per cent to close at N7.45, per share.
On the other hand, UACN led the losers’ chart by 10 per cent, to close at N4.50, per share. Champion Breweries followed with a decline of 9.80 per cent to close at N1.38, while Africa Prudential shed 9.25 per cent to close at N3.63, per share. Chams lost 7.69 per cent to close at 24 kobo, while University Press shed 7.38 per cent to close at N1.13, per share.
However, total volume traded fell by 10.63 per cent to 111.52 million shares, worth N1.56 billion, and traded in 3,122 deals. Transactions in the shares of Zenith Bank topped the activity chart with 16.15 million shares valued at N283.9 million.
UBA followed with 13.95 million shares worth N86.04 billion, while FBN Holdings traded 13.64 million shares valued at N64.8 million.
UAC of Nigeria (UACN) traded 7.8 million shares valued at N35.91 million, while Guaranty Trust Bank transacted 5.15 million shares worth N141.08 million.
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