Nigerian equities market It was a week that the bears dominated trading at the stock market, contrary to expectations that the gains posted the preceding week would be sustained.
The market had recorded a marginal growth of 0.09 per cent two weeks ago, following investors’ reaction to the financial results of companies for the half year ended June 30, 2018.
Although more results were released last week, bouts of profit taking and bargain hunting, especially in bellwethers caused the Nigerian Stock Exchange (NSE)All-Share Index to lose 0.37 per cent. Consequently, the NSE ASI closed at 36,499.67, while market capitalisation ended at N13.322 trillion.
The market appreciated three out of the five days. But the two days of losses offset the impact of gains in the other sessions.
Hence, as the NSE ASI closed the week lower. However, the value of shares traded rose to N20.316 billion staked on 1.391 billion shares compared with N16.739 billion invested in 1.417 billion shares the previous week.
The market opened the week on positive note as the NSE ASI appreciated by 0.84 per cent to be at 36,946.05. Similarly, the market capitalisation appreciated by 0.84 per cent to close at N13.38 trillion. The positive performance was due to investors’ continued response to favourable corporate earnings for the half year ended June 30, 2018. The year-to-date decline of the NSE ASI improved to 3.39 per cent.
In all, 32 stocks advanced in price, while 22 depreciated. SeplatPetroleum Development Company Plc and Mutual Benefits Assurance Plc led the gainers, chalking up 10 per cent apiece to close at N687.50 and N0.33 per share respectively.
Northern Nigerian Flour Mills Plc trailed with 9.9 per cent, just as Neimeth International Pharmaceuticals Plc and Oando Plc garnered 9.5 per cent each.
Conversely, Conoil Plc and Pharm Deko Plc led the bears, shedding 10 per cent apiece, followed by Medview Airline Plc with a decline of 9.8 per cent. Redstar Express Plc and Transcorp Hotels Plc closed 9.6 per cent and 9.4 per cent lower in that order.
Analysts at Meristem Securities said bargain hunting on bellwether stocks across sectors, particularly in the banking and the oil & gas spaces drove the market to a positive close on that day.“We expect this trend to persist in the coming trading days, as we expect positive earnings releases flood the market,” they said.But on Tuesday, the marketsustained positive momentum following gains by bellwether tickers such as Nestle […]