As investors gained N42.3bn Nigeria Stock Exchange
Investors trading on the Nigeria Stock Exchange will record more gains today as local fund mangers continue to pump money into the stock market driven by low interest rates in the treasury bills market.
Yesterday, investors gained ₦42.3 billion as total value of listed on the Nigeria Stock Exchange (market capitalisation) rose to N15.0 trillion from N14.99 trillion on Monday prompting year-to-date ( YTD) return to improve to 7.2% from 0.13% on Monday. Similarly, the Nigeria Stock Exchange All-Share Index (ASI) yesterday rose by 28bps to 28,777.96 points.
Activity level strengthened as volume and value traded advanced 20.4% and 25.6% to 340.8million units and ₦5.6bn respectively.
This trend is expected to continue today according to analysts at Vetiva Capital Management Limited.
In the outlook for the stock market today, they said: “With a number of investors still taking advantage of the low prices of attractive counters in the equities space, coupled with the inflow of funds by local fund managers due to the unattractive yields in the fixed income market, the Nigerian equities market continue to trade in the green, as the YTD performance increased to +7.21%. Taking a cue from the positive sectoral performances, in conjunction with the positive market breadth, we anticipate another upward performance tomorrow, though the possibility of profit taking on recent gains cannot be overruled.”
Trading results from the Nigeria Stock Exchange yesterday showed that the most traded stocks by volume were GUARANTY (56.8m units), ZENITH (47.8m units) and WAPIC (40.0m units) while GUARANTY (₦1.7bn), DANGCEM (₦1.0bn) and ZENITH (₦1.0bn) led by value.
Analysts at Afrinvests Securities noted that market breadth declined to 1.8x from the 3.3x recorded previously as 27 stocks gained against the 15 that declined. CUSTODIAN (+10.0%), NPFMCRFBK (+9.7%) and ETRANZAC (+7.7%) were top gainers while MORISON (-10.0%), CHIPLC (-8.8%) and NASCON (-8.4%) led the laggards.
The Banking index gained the most, up to 1.0% due to buying interest in ETI (+7.7%), as GUARANTY gains (+0.7%) and UBA gains (+2.1%).
The Industrial Goods and Oil & Gas indices followed suit by rising up to 0.4% and 0.1% respectively.
DANGCEM also gained by (+0.7%) and OANDO by (+0.9%). Price appreciation in ETRANZAC (+7.7%) drove the AFR-ICT index marginally higher by 3bps.
Conversely, the Insurance and Consumer Goods indices declined by 1.0% and 0.3% respectively as a result of sell pressures in WAPIC (-7.5%), CHIPLC (-8.8%), NASCON (-8.4%) and INTBREW (-4.6%).