The value of the Nigerian equities market rose N117 billion to close at N14.2 trillion on continuing bullish trend.
The bargain hunting in heavy weight counters also led to a growth of 0.84 per cent in the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to close at 39,167.39. As a result, the year-to-date (YTD) growth has improved to 2.4 per cent.
Yesterday’s performance was influenced by gains in Dangote Cement Plc, Nestle Nigeria Plc and Seplat Petroleum Company Development Plc. In all, 27 stocks appreciated while 21 depreciated.
Seplat led the price gainers with 8.1 per cent on as investors increased their stake ahead of improved returns. The company hd last year returned to profitability last year and consolidated on the performance in the first quarter ended March 31, 2018.
The Managing Director of Seplat, Mr. Austin Avuru last week told investors at the company’s annual general meeting that the company ws well equipped to deliver long-term value for shareholders.
“I am pleased to report that Seplat made a return to full-year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast, we were plagued throughout most of the first half by force majeure at the Forcados terminal…Our proactive and decisive management coupled with the strong underlying fundamentals of the business have seen us emerge from an exceptionally challenging period a much fitter and stronger business that is well equipped to deliver long-term value for our shareholders,” he said.
Double 11 Plc closed as the second highest price gainer with 4.9 per cent, NEM Insurance Plc and Equity Assurance Plc garnered 4.8 per cent and 4.7 per cent in that order.
Conversely, Prestige Assurance Plc led the price losers with 4.6 per cent, followed by Eterna Plc with 4.4 per cent. FCMB Group Plc shed 4.1 per cent, just as Niger Insurance Plc and A.G Leventis Plc went down 3.7 per cent.
In terms of sectors, four of them appreciated while only one declined. The loser was the NSE Banking Index that shed 0.04 per cent. The NSE Oil & Gas Index led with 4.9 per cent on the back of gains by Seplat and Double 11.
The NSE Insurance Index rose 0.9 per cent, while the NSE Industrial Goods Index and NSE Consumer Goods Index depreciated by 0.5 per cent and 0.4 per cent.
Trading at the stock market resumed for the week on a positive note yesterday, with the Nigerian Stock Exchange (NSE) All-Share Index rising by 0.45 per cent to close at 38,844.32. The market had recovered N700 billion last week after bargain hunters swooped on oversold counters. For four days running, the market was bullish but fell on Friday as some investors paused for profit taking.
However, the bullish trend resumed yesterday as 30 stocks appreciated while 20 others depreciated. Consequently, the month-to-date and year-to-date growth improved to 1.94 per cent and 1.57 per cent in that order.
According analysts at Meristem Securities Limited, trading recovered from the losses recorded on the final trading session last week.
“The gains on counters in the banking and consumer goods sectors drove the performance of the market. We expect this to continue for the remainder of the week, even with bouts of profit taking on some of the counters,” they said.
Bellwethers such as Nigerian Breweries Plc, FBN Holdings Plc, Guaranty Trust Bank Plc and Zenith Bank Plc were among the advancers. But NASCON Allied Industries Plc led the overall gainers’ table with 7.1 per cent.
Diamond Bank Plc trailed with 6.5 per cent, while Japaul Oil & Maritime Services Plc gained 6.4 per cent. NAHCO Plc and Equity Assurance Plc chalked up 5.0 per cent each. AIICO Insurance Plc and Presco Plc gained 4.8 per cent and 4.7 per cent respectively.
Conversely, Berger Paints Nigeria Plc led the price losers with 5.0 per cent, followed by BOC Gases Plc with 4.9 per cent. Eterna Plc shed 4.7 per cent just as Prestige Assurance Plc and Wema Bank Plc went down by 4.4 per cent and 3.9 per cent respectively.
Meanwhile, activity level was mixed as volume traded improved by 187.2 per cent to 603.2 million shares while value traded remained flat at N3.9 billion. The most traded stocks by volume were Ikeja Hotel Plc (279.6 million shares), United Capital Plc (79.1 million shares) and African Prudential Plc (56.8 million shares) while Ikeja Hotel Plc (N705.0 million shares), Dangote Sugar Refinery Plc (N641.9 million) and GTBank (N437.7 million) were the top traded stocks by value.
The Nigerian Stock Exchange (NSE) said it has a unique role to play in the sustainable growth of the domestic and regional capital markets as well as the broader economy.
The Chief Executive Officer of the NSE, Mr. Oscar Onyema said this while speaking to THISDAY in Lagos.
He said the role of the NSE would be fulfilled by mobilising savings for domestic investment in the economy including sectors that require special attention such as small and medium scale enterprises(SMEs) and infrastructure sectors.
“We will also provide thought leadership on economic and business issues, build capacity for institutions and communities and promote good governance as the foundation of sustainable and equitable long-term growth and competitiveness,” he added.
According to Onyema, the business model of the exchange ensures long-term sustainability that enables it to weather cyclical changes in the market conditions and provide new, innovative opportunities for wealth creation.
“We provide a market for the issuance and trading of range of investment products (including equities, bonds, exchange traded funds and mutual funds) powered by world-class technologies and robust regulatory framework, for reliable and efficient access to capital formation and value creation,” he said.
The NSE boss had last Thursday said the demutualisation process was still on course.
According to him, they are waiting for the signing of the Demutualisation Bill to be signed into law to fast-track the process.
“While waiting for the Bill to be signed into law, we are working on some oustatding aspects and providing clarity on the process through regular engagement with stakeholders. We are very positive that the demutualisation of the NSE will further catalyse the development of transparent and efficient capital market that is very critical to the country’s economy,” he said.
Reviewing the performance of the exchange in 2017, Onyema said a total income of N8.30billion and N3.82 billion surplus before tax were recorded , representing 86 per cent and 5,629 per cent when compared with N4.46 billion and N27.45 million respectively posted in 2016.
“This positive performance, after the significant headwinds witnessed over the past two years, affirms the resilience of our market and its potential as a catalyst of economic growth in Nigeria and the hub for Africa. Focus on executing our robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins this strong performance,” he said.
The nation’s equities market recovered significantly last week as investors took advantage of low priced stocks to increase their stakes.
The Nigerian Stock Exchange (NSE) All-Share Index had in the previous week declined by 6.38 per cent to close at 36,816.29, while market capitalisation shed N908.2 billion to close at N13.3 trillion, following sustained massive sell off by some investors.
The four-week bear run had led to high apprehension among some investors and stakeholders, with expectation that the panic button may be pressed.
But relief came last week as the market rebounded, recovering N700 billion in terms of its market capitalisation, which closed at N14.008 trillion.
Similarly, the NSE ASI gained 5.03 per cent to close at 38,669.23. All other indices finished higher with the exception of the NSE Insurance and NSE Oil/Gas Indices that depreciated by 0.61 per cent and 1.34 per cent respectively, while the NSE ASeM Index closed flat.
According to analysts at Meristem Securities Limited, the market gained positive momentum following bargain hunting activities on the heavy weight counters in the market.
“The low prices of the counters in the consumer goods and banking sectors was attractive enough to spur buying pressure in the market,” they added.
Also commenting, analysts at Cordros Capital Limited said: “Relatively lower prices of value stocks, coupled with still-positive macroeconomic fundamentals, will further sustain gains in the equities market.”
Daily Performance
The market last Monday recorded its first gain after losing for 12 day to rise by 0.36 per cent to close at 36,947.10. Although the market recorded 21 gainers and losers apiece, heavy weighted counters such as Guaranty Trust Bank Plc, Zenith Bank Plc and Nigerian Breweries Plc, FBN Holdings Plc made the bulls to have an upper hand.
Market analysts at Cordros Capital Limited had envisaged the rebound, saying: “While acknowledging potential bargain hunting in the short term, in what follows relatively lower stock prices, we guide investors to trade cautiously and focus primarily on fundamentally sound stocks.”
Also, on the first day of the week, Japaul Oil and Maritime Services Plc led the 21 stocks with 9.0 per cent. Custodian and Allied Plc and Eterna Plc that gained 4.9 per cent each. GTBank Plc garnered 4.5 per cent, just as AIICO Insurance Plc, FBN Holdings Plc and FCMB Holdings Plc appreciated by 3.5 per cent, 3.4 per cent and 3.2 per cent in that order.
LASACO Assurance Plc and Nigerian Breweries Plc equally advanced, adding 2.9 per cent apiece.
Conversely, on that day, Oando Plc led the bears, sliding by 8.9 per cent, followed by Cadbury Nigeria Plc with 8.0 per cent. Presco Plc shed 5.0 per cent, while PZ Cussons Nigeria Plc and Sterling Bank Plc went down by 4.8 per cent and 4.6 per cent respectively. Jaiz Bank Plc and Law Union and Rock Insurance Plc got hair cuts of 4.4 per cent each.
But activity level weakened as volume and value traded dipped 39.2 per cent and 2.3 per cent to 314.5 million shares and N7.0 billion respectively compared with the preceding Friday’s figures.
Commenting on the market performance on that day, analysts at Meristem Securities Limited had said: “Positive sentiment prevailed in the equities market following buying pressure on counters which have lost significantly in previous weeks, particularly heavily weighted stocks in the banking sector like GTBank and Zenith Bank.
“This was enough to offset the impact of continued sell-offs in the consumer goods space.”
However, the positive sentiments were sustained on the second day on continuing bargain hunting in heavy weight counters made the equities market to extend its gain.
The index jumped 2.5 per cent to close at 37,854.92, while market capitalisation added N328.8 billion to close higher at N13.7 trillion.
Similarly, on the second day, Meristem Securities Limited had explained that the mood in the market was upbeat as investor appetite showed encouraging signs of improvement.
“Bargain hunting on bellwether stocks such as Dangote Cement, Nigerian Breweries, GTBank drove the positive performance of the market.
“We expect this trend to persist in the days ahead as investors continue to take advantage of the relatively low prices across the sectors,” they had said.
An analysis of the performance for that day had shown that Oando Plc led the price gainers with 9.8 per cent followed by International Breweries Plc that garnered 7.6 per cent. Dangote Sugar Refinery Plc chalked up 6.3 per cent just as Honeywell Flour Mills Plc, Okomu Oil Palm Plc and Nigerian Breweries Plc gained 5.0 apiece.
Similarly, Lafarge Africa Plc, Diamond Bank Plc and Fidelity Bank Plc appreciated by 4.9 per cent each, while FCMB Group Plc went up by 4.8 per cent.
Conversely, Consolidated Hallmark Insurance Plc led the price losers with 6.6 per cent, trailed by Royal Exchange Plc with 5.8 per cent. UAC of Nigeria Plc shed 4.5 per cent, while First Aluminium Nigeria Plc, Total Nigeria Plc and Sovereign Trust Insurance Plc went down by 4.5 per cent, 4.3 per cent and 3.7 per cent in that order.
But activity level was mixed as volume traded rose 8.0 per cent to 339.7 million shares while value traded fell 15.2 per cent to N6.0 billion. The top traded stocks by volume were Access Bank (133.1 million shares), GTBank (39.3 million shares) and UBA (23.2 million shares) while GTBank (N1.6 billion), Access Bank (N1.4 billion) and Dangote Cement (N911.2 million) were the top traded stocks by value.
Sector performance was mostly bullish as four of the five indices higher. The NSE Industrial Goods Index and NSE Banking Index led with 3.2 per cent apiece.
The NSE Consumer Goods Index followed with 2.7 per cent while the NSE Insurance Index gained 0.2 per cent. On the negative side, the NSE Oil & Gas Index emerged the lone loser shedding 0.6 per cent.
The equities market extended its gains on the third day with the index rising 1.5 per cent to close at 38,435.29. The positive performance was largely due to buying interest in Nigerian Breweries Plc, Dangote Cement and Zenith Bank.
Similarly, market capitalisation added N210.2 billion to close at N13.9 trillion. Also, activity level strengthened as the volume and value traded trended 15.7 per cent and 11.9 per cent higher to 393.1 million shares and N6.7 billion respectively. The top traded stocks by volume were Zenith Bank (110.6 million shares), Fidelity Bank (63.9 million shares) and UBA (22.5 million shares) while Zenith Bank (N3.1 billion), Dangote Cement Plc (N677.5 million) and Seplt Petroleum Development Company Plc (N549.8 million) led the top traded stocks by value.
The market recorded the fourth consecutive gain last Thursday appreciating further by 1.58 per cent to close at 39,042.11, while market capitalisation added N219.8 billion to close at N14.14 trillion.
Sector performance on that day was also mixed as three of five closed bullish . The NSE Industrial Goods Index led the gainers chart for the third consecutive session, up 3.7 per cent. The NSE Consumer Goods Index and NSE Banking Index trailed, increasing 1.0 per cent and 0.1 per cent respectively.
Conversely, the NSE Insurance and NSE Oil & Gas Index shed 0.7 per cent and 0.5 per cent in that order.
Market Turnover
Meanwhile, investors traded 1.749 billion shares worth N31.183 billion in 24,604 deals down from 2.699 billion shares valued at N84.775 billion that exchanged hands in 19,715 deals the previous week.
The Financial Services Industry dominated the activity chart with 1.423 billion shares valued at N19.717 billion traded in 13,950 deals, thus contributing 81.37 per cent and 63.23 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 153.105 million shares worth N6.805 billion in 4,512 deals. The third place was occupied by Conglomerates Industry with a turnover of 60.473 million shares worth N186.600 billion in 905 deals.
Trading in the top three equities namely – Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank Plc accounted for 588.605 million shares worth N16.568 billion in 4,120 deals, contributing 33.65 per cent and 53.14 per cent to the total equity turnover volume and value respectively.
Price Gainers and Losers
The price movement chart showed that 49 stocks appreciated last week higher than the 25 of the previous week, while 29 equities depreciated in price, lower than 48 equities of the previous week. Japaul Oil led the price gainers with 40.9 per cent, trailed by Prestige Assurance Plc with 39.5 per cent. NASCON Allied Industries Plc c chalked up 17.8 per cent, just as C & I Leasing Plc appreciated by 17.5 per cent.
Dangote Flour Mills Plc and Lafarge Africa Plc and Dangote Sugar Refinery Plc garnered 17.1 per cent, 17 per cent and 14.6 per cent in that order. Other top price gainers include: Fidelity Bank Plc (14.5 per cent); Transnational Corporattion of Nigeria Plc(14.4 per cent) and Nigerian Breweries Plc (13.5 per cent).
Conversely, NPF Microfinance Bank Plc led the price with 14.5 per cent, trailed by Consolidated Hallmark Insurance Plc with 12.9 per cent. First Aluminium Nigeria Plc shed 9.0 per cent, just as LASACO Assurance Plc, Presco Plc 7.8 per cent and 6.2 per cent respectively.
Other top price losers were: May & Baker Nigeria Plc(5.6 per cent); Mutual Benefits Assurance Plc (5.2 per cent); PZ Cussons Nigeria Plc (5.0 per cent); Guineas Insurance Plc and Skye Bank Plc(5.0 per cent apiece).
The Nigerian Stock Exchange (NSE) facilitated the investment of N10.341 trillion in equities and debt bonds in the Nigerian capital market in the last 10 years, data obtained from the NSE has shown.
The data obtained by THISDAY showed that the sum was investment between 2008 and 2017.
An analysis of the figures showed that at N2.379 trillion, 2008 accounted for the highest amount during the period. This was the year when the market experienced an unprecedented boom following the banking sector recapitalisation.
This was closely followed by 2014, when investors traded N1.339 trillion and 2017, which accounted for N1.273 trillion.
The local bourse recorded N1.044 trillion in 2013 and N953 billion in 2015. A total of N797 billion was invested in 2010, just as N686 billion was staked in 2009. The year 2012 accounted for N658 billion, while 2011 recorded N635 billion. Investors traded N577 billion in 2016.
The NSE has been providing a platform for investors to invest in stocks and bonds as well as for corporates and government to raise funds for their operations and developmental projects respectively.
After three years of decline the stock market rebounded last year by gaining 42.3 per cent, while investors traded N1.273 trillion securities.
Also, the exchange ended 2017 with a total income of N8.30 billion, representing a growth of 86 per cent, as against the N4.46 billion in 2016. Also, its operating surplus before tax soared by 5,629 per cent from N27 million to N3.82 billion in 2017.
The Chief Executive Officer of NSE, Mr. Oscar Onyema said: “This positive performance, after the significant headwinds witnessed over the past two years, affirms the resilience of our market and its potential as a catalyst of economic growth in Nigeria and the hub for Africa.
“Focus on executing our robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins this strong performance.”
Onyema explained that buoyed by improved ease of market entry and exit for foreign portfolio investors, transaction fees jumped by 130 per cent to N3.6 billion in 2017, accounting for 45 per cent of the group’s total income last year.
According to him, listing fees appreciated by 110 per cent from 2016 to the year under review, indicating a revival in primary market activity.
“Last year, we reiterated the need to diversify the exchange’s income streams and I am pleased by the positive results we have recorded in this regard.
“Our market services business consisting of technology and market data services continue to perform impressively. More telling is the fact that market services income has continued to grow despite the market down-cycle which significantly impacted our core trading and listing businesses in 2015 and 2016,” Onyema said.
The green bond market in Nigeria will soon witness a boost as the Securities and Exchange Commission (SEC) preparesto release rules to guide issuance of green bonds in the country.
Green bonds are fixed income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaption and other environment-friendly projects. They provide investors with an attractive investment proposition and an opportunity to support environmentally and socially sound project. The federal government pioneered green bond issuance raising N10 billion.
But in order to make the bond market more attractive, the Acting Director of SEC, Ms. Mary Uduk, said that the commission was in the process of approving green Bonds rules, noting that it would be released to the market in no distance period.
Uduk disclosed this at the Nigerian Green Bond Market Development Programme Launch organised by FMDQ OTC Securities Exchange in Lagos.
“We are in the process of approving the rules and any moment from now they will be released to the market. We are getting inputs rules from stakeholders and participants in the market. You cannot do anything without structures in place. SEC is trying to put up necessary structures that will guide the market when the time comes,” Uduk said.
She said that green bonds would deepen the nation’s capital market, noting that the new product provides enormous opportunities that would turnaround our environment.
According to her, the federal government had set a benchmark for issuance of Green Bonds following successful outing in 2017 unlike Sukuk that was pioneered by a state government.
Uduk said SEC was working with Climate Bonds Initiative, an international organisation with the largest capital market of $100 trillion bond market, for climate change solutions to strengthen internal capacity.
“We don’t want a situation where corporate will want to raise green bonds and it will sit there because there is no internal capacity,” she added.
Meanwhile, the Managing Director/CEO of FMDQ OTC Exchange Securities, the Mr. Bola Onadele.Koko, said that the company had formalised its partnership with the Financial Sector Deepening (FSD) Africa and CBI through the execution of a Cooperation Agreement to support the development of the Nigerian green bond market.
He explained that the partnership would facilitate the establishment and development of a Green Bond market in Nigeria, support the developer TN of guidelines and listing requirements.
Onadele added that it would develop a pool of Nigeria-based licensed verifies to support issuers and develop a pipeline of green investments and facilitate engagement with extant and potential investors.
According to him, it will support broader debt capital markets reforms that have an impact on the non-government bond market in Nigeria.
The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has commended Dangote Cement (DCP) Plc for its adherence to best corporate governance practices even as he called for more partnerships between the two organisations.
Onyema gave the commendation wednesday, while welcoming the Group Managing Director of DCP, Joe Makoju and his management team to the special sounding of the closing gong ceremony at the NSE.
Onyema, who congratulated Makoju on his confirmation as the substantive CEO of DCP described him as proper and fit for the role given his level of experience and years of exposure in the manufacturing sector.
He said that as the largest listed company on the exchange and with other listed companies from the Group, Dangote Sugar Refinery Plc, Dangote Flour Mills Plc and NASCON Allied Industry Plc, any change in the management cadre is very important as it affects the stock market.
According to him, Makoju’s tenure as the helmsman of DCP is yielding the expected results as increased investors’ confidence has resulted in good performance of the stock.
Oscar said: “The performance of the stock is very good and is a fall-out of the resilience, expertise and diligence of the management team. It is listed on the premium board.”
He also appreciated the Chairman of DCP on his efforts and advocacy for an improved and better capital market as well as sponsorship of NSE’s events. He called for more partnerships with DCP in terms of corporate social responsibilities (CSR) projects.
Responding, Makoju described it as an honour and privilege to be invited to participate and sound the closing gong, noting that there exists a special relationship between Dangote Group and the NSE as Aliko Dangote was a former president of the Council of the exchange. He said that DCP has grown from a national company to a continental one operating in several countries across Africa.
The doyen of stockbrokers, Mr. Sam Ndata, on behalf of other stockbrokers congratulated Makoju and described him as a tested hand in the cement sector. He said: “There is no doubt that DCP will do well with you at the helm of affairs.”
Meanwhile, the bulls maintained strong hold on the equity market yesterday as the NSE All-Share Index appreciated further by 1.53 per cent to close at 38,435.29. The appreciation recorded in the share prices of Zenith Bank, Nigeria Breweries, Lafarge Africa, Dangote Cement and Flour Mills bolstered the performance.
There are high expectations that the Nigerian equities would witness more patronage by Pension Fund Administrations (PFA) as from July 1, 2018 when the new multi-fund structure introduced by National Pension Commission (PenCom) will become operational.
While PFAs are allowed by law to invest about 25 per cent of their pension assets in equities, the level is below 10 per cent as most of them prefer investing in federal government bonds.
But in a bid to resolve the challenge of asset-liability risk management experienced by pension funds and improve returns on pension assets, PenCom introduced the multi-fund structure. Under the new structure, the funds are in four categories.
While Fund 1 is targeted at people of 49 years and below who in the quest for higher returns are willing to take more risks, Fund 2 is aimed at people who, are aged 49 years and below but are still working and are satisfied with moderate returns and levels of risks. Fund 3 targets people 50 years and above but still working and have very low risk appetite while in Fund 4 are retirees who have the lowest risk profile of all categories.
Analysts at FSDH Merchant Bank Research said the development would favour the equities market as PFAs would channel more funds to the market.
“The expected additional fund allocation to the equity market may change the current downward trend in the equity market as the market receives more liquidity. Stocks that have strong fundamentals and that pay interim dividend may attract the expected investment from the PFAs,” they said.
PenCom Investment Supervision Personnel, Mr. Ibrahim Kangiwa, had explained that the main objective of the RSA multi-fund investment structure is to resolve the challenge of asset-liability risk management experienced by pension funds.
According to him, this would be achieved by: better aligning the risk and return expectations of contributors; better matching of pension assets and liabilities; as well as diversification of pension fund portfolios, as minimum limits are set for aggregate investments in variable income securities for each fund.
The Managing Director and Chief Executive Officer of Stanbic IBTC Pension Managers, Mr. Eric Fajemisin, had said that the company was ready to key into the implementation of new structure.
According to him, the new structure would help in deepening asset accumulation in the country, and provide the crucial capital required for investment in critical sectors of the economy.
Sustained bargain hunting in heavy weight counters saw the equities market extend its gains for the second day yesterday. The market had on Monday recovered from a spell of bearish trading that lasted 11 days.
But the bulls consolidated their control yesterday as 39 stocks appreciated in value compared with 15 that declined. Consequently the Nigerian Stock Exchange All-Share Index (ASI) jumped 2.5 per cent to close at 37,854.92, while market capitalisation added N328.8 billion to close higher at N13.7 trillion.
According to analysts at Meristem Securities Limited, the mood in the market was upbeat as investor appetite showed encouraging signs of improvement.
“Bargain hunting on bellwether stocks such as Dangote Cement, Nigerian Breweries , GTBank drove the positive performance of the market. We expect this trend to persist in the days ahead as investors continue to take advantage of the relatively low prices across the sectors,” they said.
Oando Plc led the price gainers with 9.8 per cent followed by International Breweries Plc that garnered 7.6 per cent. Dangote Sugar Refinery Plc chalked up 6.3 per cent just as Honeywell Flour Mills Plc, Okomu Oil Palm Plc and Nigerian Breweries Plc gained 5.0 apiece.
Similarly, Lafarge Africa Plc, Diamond Bank Plc and Fidelity Bank Plc appreciated by 4.9 per cent each, while FCMB Group Plc went up by 4.8 per cent.
Conversely, Consolidated Hallmark Insurance Plc led the price losers with 6.6 per cent, trailed by Royal Exchange Plc with 5.8 per cent. UAC of Nigeria Plc shed 4.5 per cent, while First Aluminium Nigeria Plc, Total Nigeria Plc and Sovereign Trust Insurance Plc went down by 4.5 per cent, 4.3 per cent and 3.7 per cent in that order.
Meanwhile, activity level was mixed as volume traded rose 8.0 per cent to 339.7 million shares while value traded fell 15.2 per cent to N6.0 billion. The top traded stocks by volume were Access Bank (133.1 million shares), GTBank (39.3 million shares) and UBA (23.2 million shares) while GTBank (N1.6 billion), Access Bank (N1.4 billion) and Dangote Cement (N911.2 million) were the top traded stocks by value.
Sector performance was mostly bullish as four of the five indices higher. The NSE Industrial Goods Index and NSE Banking Index led with 3.2 per cent apiece.
The NSE Consumer Goods Index followed with 2.7 per cent while the NSE Insurance Index gained 0.2 per cent. On the negative side, the NSE Oil & Gas Index emerged the lone loser shedding 0.6 per cent.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) recorded its first gain rising by 0.36 per cent to close at 36,947.10 yesterday after several days of a bear run. The market had hit a five-month low last week as rampaging bears took control and pulled the market into negative territory with a year-to-date decline of 3.38 per cent as at Friday.
However, some of the losses were pared yesterday on bargain hunting in banking sector. Although the market recorded 21 gainers and losers apiece, heavy weighted counters such as Guaranty Trust Bank Plc, Zenith Bank Plc and Nigerian Breweries Plc, FBN Holdings Plc made the bulls to have an upper hand.
Market analysts at Cordros Capital Limited had last Friday said the bear run that lasted for about 11 days would be followed by bargain hunting.
“While acknowledging potential bargain hunting in the short term, in what follows relatively lower stock prices, we guide investors to trade cautiously and focus primarily on fundamentally sound stocks,” they had said.
And when trading resumed for the week yesterday, 21 stocks added value led by Japaul Oil and Maritime Services Plc with 9.0 per cent, trailed by Custodian and Allied Plc and Eterna Plc that gained 4.9 per cent each. GTBank Plc garnered 4.5 per cent, just as AIICO Insurance Plc, FBN Holdings Plc and FCMB Holdings Plc appreciated by 3.5 per cent, 3.4 per cent and 3.2 per cent in that order. LASACO Assurance Plc and Nigerian Breweries Plc equally advanced, adding 2.9 per cent apiece.
Conversely, Oando Plc led the bears, sliding by 8.9 per cent, followed by Cadbury Nigeria Plc with 8.0 per cent. Presco Plc shed 5.0 per cent, while PZ Cussons Nigeria Plc and Sterling Bank Plc went down by 4.8 per cent and 4.6 per cent respectively. Jaiz Bank Plc and Law Union and Rock Insurance Plc got hair cuts of 4.4 per cent each.
However, activity level weakened as volume and value traded dipped 39.2 per cent and 2.3 per cent to 314.5 million shares and N7.0 billion respectively compared with Friday’s figures.
Commenting on the market performance, analysts at Meristem Securities Limited said: Positive sentiment prevailed in the equities market following buying pressure on counters which have lost significantly in previous weeks, particularly heavily weighted stocks in the banking sector like GTBank and Zenith Bank. This was enough to offset the impact of continued sell-offs in the consumer goods space.”
