Trading on the floor of the Nigerian Stock Exchange ended on a positive note on Thursday as financial services stocks boost the NSE All-Share Index significantly, while oil and gas stocks, overall, closed in the red.
The NSE ASI appreciated to 26,559.01 basis points from 26,407.64 basis points, while market capitalisation closed at N9.138tn from N9.086tn recorded on Wednesday.
A total of 199.983 million shares valued at N1.503bn exchanged hands in 3,313 deals.
The financial services sector extended its rally after gains across banking blue chips – Ecobank Transnational Incorporated Plc, United Bank of Africa Plc, Guaranty Trust Bank Plc and Zenith Bank Plc appreciated by 4.99 per cent, 4.85 per cent, 4.45 per cent and 1.59 per cent, respectively.
The consumer goods sector recorded losses following continued pressure on Nigerian Breweries Plc, which posted 0.73 per cent loss.
While the industrial goods sector closed flat, the energy sector retreated as Forte Oil Plc lost 0.25 per cent after it finally bowed to profit taking after notching an impressive return of 140 per cent in a nine session rally. Mobil Oil Nigeria Plc, Oando Plc and Total Nigeria Plc’s shares dropped by fiver per cent, 4.67 per cent and 4.40 per cent, respectively.
Market breadth remained positive with 23 advances and 14 declines.
Speaking on the possible outcome of Friday’s (today) trading, analysts at Vetiva Capital Management Limited said, “We expect the NSE ASI to add more points at week close as investors continue to bid up bellwether stocks.”
Global markets traded mixed after the United States Fed announced a 25 basis points rate increase and revealed a hawkish outlook for 2017. While European markets were higher with banking stocks leading gains, Asian markets were mostly lower save for the Nikkei which rose on the back of a relatively weaker yen.
Meanwhile, the naira stabilised at N305 to a US dollar as increased demand for FGN bonds persisted.
The impact of the net debit to the system following the treasury bond auction which happened on Wednesday was felt in the money market on Thursday, as the open-buy-back and overnight rates advanced to 3.42 per cent and 4.17 per cent, respectively.
The result of the treasury bills Primary Market Auction held on Wednesday showed an oversubscription was recorded for only the 364-day instrument. The stop rates for the instruments were: 91 Day – 14 per cent; 182 Day – 17.50 per cent and 364 Day – 18.68 per cent.
The FGN bonds space was awash with bullish sentiments. However, investors’ appetite for shorter-term instruments waned as the April 2017 bond recorded the highest advancement of 0.48 per cent. Overall, average bond yield fell to 16.51 per cent.
For the third consecutive day, the naira to dollar exchange rate pegged at N305 and N485 in the interbank and parallel foreign exchange markets, respectively.
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