Nigerian Stock Exchange

November 25, 2019

Bulls drive equity gains as NSE Index up by 0.16%

Millennials and the future of the Nigerian Stock Exchange

Nigerian Stock Exchange

By Peter Egwuatu

The Nigerian equity market today (Monday) closed on a green note as the Nigerian Stock Exchange, NSE All Share Index, ASI climbed 0.16 percent or 16 bases points to close at 27,035.78 points.

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The increase in Index is buoyed by gains in Nestle Nigeria which went up +4.0 percent followed by Dangote Sugar up by +8.2 percent and Guaranty Trust Bank, GTBank which garnered +0.7 percent.

Furthermore, Year to Date, YtD loss softened to -14.0 percent and market capitalisation appreciated by N21.4 billion to close at N13.0trillion.

Activity level improved as volume and value traded increased by 11.3 percent and 13.1 percent to 230.7million units and N3.2billion respectively. The most active stocks by volume were Zenith Bank (42.3million units) GTBank  (26.0million units), and First Bank Nigeria Holding, FBNH (19.7million  units) while Zenith Bank (N798.2million ), GTBank (N775.7million ) and Nestle (N623.1million) led by value.

On sectoral performance, three sectors gained against two decliners, although the AFR-ICT Index sector was flat. The Consumer Goods Index which garnered (+2.7 percent) and Banking Index (+2.7 percent) led gainers as a result of buying interest in Dangote Sugar  which gained (+8.2 percent ), Cadbury  (+8.9 percent ) and JAIZBANK (+9.5 percent).

Similarly, the Insurance Index was up 0.4 percent, underpinned by price appreciation in AIICO Insurance (+8.5 percent) and Law Union (+10.0 percent.

Conversely, losses in WAPCO (-2.1 percent), CUTIX (-9.5 percent) and Oando (-1.0 percent) drove declines in the Industrial Goods Index dropping by (-0.5 percent) and Oil & Gas (-0.1 percent).

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Meanwhile investor sentiment as measured by market breadth fell as 20 stocks gained against 16 losers. The top gainers were Law Union (+10.0 percent ), JAIZBANK (+9.5 percent ) and PRESCO (+9.4 percent ) while OKOMUOIL (-9.7 percent), CUTIX (-9.5 percent ) and FBNH (-7.3 percent ) were the top losers.

Analysts at Afrinvest Research said : “We expect the local bourse to sustain gains as investors continue to take position in fundamentally sound stocks, given the Open Market Operation, OMO and Treasury Bills restrictions.”