Stock: Equity Market Rallies N109bn Rally

The Nigerian Stock Exchange (NSE) Thursday sustained the bullish trend as trading rallied to a N109 billion gain

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The All-Share Index and Market Capitalization rose by 0.53 percent to close at 39,293.14 basis point and N20. 558 trillion, up from 39,085.78 basis point and N20. 449 trillion respectively.

The ASI and market capitalisation appreciated by 207.36 index point and N109 billion respectively.

The market turnover decreased by 36.6 percent, as investors bought and sold 229.417 million shares worth N3.780 billion in 4,016 deals as against the 361.903 million shares valued at N5.701 billion in 4,018 deals that exchanged hands on Wednesday.

The market breadth was positive with 23 stocks appreciating, while 12 declined.

The top gainers was led in percentage parameters by Coronation Insurance Plc, rising by 10 percent to close transaction at N0. 55 Kobo per share.

UPDC Real Estate Investment Plc appreciated by 9.80 percent to close at N5. 6 Kobo per share, while Pharma – Deko Plc climbed by 9.63 percent to close at N1. 48 Kobo per share.

Neimeth Pharmaceutical and GlaxoSmithKline surged by 9.55 and 9.45 per cent to close at N1. 95 Kobo and N6.95 per share respectively.

Conversely, Sovereign Trust Insurance led the losers’ chart, losing 8.33 percent to close at N0. 22 Kobo per share.

PF Micro Finance Bank shed 7.22 percent to close at N1.8 Kobo per share, while Prestige Assurance Plc declined by 6.82 percent to close at N0. 41 Kobo per share.

Japaul Gold and Dangote Sugar Refinery Plc fell by 4.44 and 2.67 percent to close at N0. 43 Kobo and N16. 4 Kobo per share respectively.

For the second consecutive trading sessions, Union Bank of Nigeria was the most active stock at 79. 566 million shares valued at N421.699 million.

While Communication giant, MTN Nigeria finished trading as the most valuable equity at N1.613 billion.


Equities Market

Equities market gains over N100bn as investors buy Zenith, GTBank, others

The record positive seen on Custom Street came as investors realise the equities market offers reentry opportunities for value hunters as prices of most counters hit record lows.

Trading on the floor of the Nigerian Exchange (NGX) Limited closed in green zone on Thursday as investors raised stakes in stocks like Zenith Bank Plc, Eterna Plc, GTBank Plc, Dangote Sugar Refinery Plc and Lasaco Plc.

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The record positive seen on Custom Street came as investors realise the equities market offers reentry opportunities for value hunters as prices of most counters hit record lows.

The All Share Index (ASI) of the Bourse stood higher by 0.54percent to close at 38,914.84 points, from 38,706.13 points recorded the preceding day.

The negative return year-to-date (YtD) stood lower at -3.37percent. This week alone, the equities market has increased by 0.69 percent, while this month it has declined by 2.22 percent.

Also, the value of listed stocks on the Bourse increased by N109billion, from the preceding day high of N20.251trillion to N20.360trillion.

Eterna Plc led the gainers league after its share price moved from N4.62 to N5.08, up by 46percent or 9.96percent.

Lasaco also advanced, from N1.2 to N1.3, up by 10kobo or 8.33 percent. Zenith Bank moved up from preceding day low of N20.5 to N22, up by N1.5 or 7.32percent.

GTBank rose from N28 to N29.8, adding N1.8 or 6.43 percent while Dangote Sugar moved from N16 to N17, up by N1 or 6.25 percent.

Unity Bank, GTBank, Zenith Bank and FBN Holdings were actively traded stocks on the floor of Nigerian Exchange (NGX) Limited. In 4,040 deals, investors exchanged 1,468,421,633 units valued at N5.853billion.


Equity Market

Nigeria’s equities market loses over N200bn in 4 days

Listed stocks on the Nigerian equities market have lost approximately N228billion within just four (4) trading days into this new month as sell-side activities increase.

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The market furthered into the negative region after Thursday’s dip by 0.41percent. Month-to-date (MtD), it has decreased by 1.09percent while year-to-date (ytd), it is down by 2.25 percent.

As the bears gradually regain position on Custom Street, the stock market of Africa’s largest economy is not far from closing the first week of March in red. The market is worse off as investible funds continue to move out of equities due to impressive yields in the fixed income market.

“Nigerian equities have since maintained a southward direction, losing 5.6percent in February 2021… The question on many investors’ minds is largely to know if this is a temporary lull, a correction, or a significant crash”, according to United Capital research analysts.

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The analysts had reiterated that the sustained reversal in the yield environment weakens investors’ interest in equities.

“We view the current bearish performance in the market as a correction that is likely to extend through the period when yields in the fixed income market stabilize. We recognize this as an opportunity for investors to take advantage of lower prices to buy into stocks forecasted to deliver solid earnings in 2021, employing a patient approach in building up positions”, United Capital research said in a recent note.

The NSE All-Share Index (ASI) and Market Capitalisation which opened this week at 39,799.89 points and N20.823trillion respectively stood lower at 39,364.67 points and N20.595trillion at the close of trading session on Thursday. In 5,486 deals, investors exchanged 493,172,597 units valued at N4.722billion.

Fidson Healthcare led the laggards after its share price moved down from N4.9 to N4.41, losing 49kobo or 10percent. Northern Nigeria Flour Mills followed, after its share price decreased from N7.02 to N6.32, losing 70kobo or 9.97percent, while Nigerian Enamelware lost N2.2, from N22.1 to N19.9, down by 9.95percent.

NEM Insurance share price decreased from N1.91 to N1.72, losing 19kobo or 9.95percent, while NCR lost 34kobo or 9.91percent, after moving from N3.43 to N3.09.