Nigerian Stock Exchange

November 15, 2019

Profit taking boosts stock market Index marginally by 0.03%

Millennials and the future of the Nigerian Stock Exchange

Nigerian Stock Exchange

By Peter Egwuatu

The Nigerian Stock Exchange, NSE All Share Index,  ASI rose marginally by three bases points or 0.03 percent to close the week at 26,851 points.

The trading session was dominated by profit taking as the domestic market closed in green on the back of gains in Guinness  Nigeria (+10.00 percent ),  First Bank Nigeria Holding, FBNH (+960bps) and  Nigerian Breweries , NB (+211bps) which moderated the effect of losses in  Guaranty Trust Bank, GTBANK  (-301bps), Zenith Bank (-157bps), MTN Nigeria  (-74bps) and  Dangote Cement (-7bps).

Equity rally continues as losses moderated to 11.5%(Opens in a new browser tab)

On the flip side, volume and value traded for the day dropped 24.78 percent and 44.22 percent respectively as banking stocks continued to dominate market turnover. Week to date performance also came in positive, as the  NSE ASI appreciated 2.04 percent Week on Week,  WoW while the  Year to Date, YtD returns reduced to -14.57 percent .

The Banking sector (+6.77 percent ) close the week as the best performing sector following WoW gains in Access Bank and GTBANK  among others while the Oil & Gas sector (-1.76 percent) closed as the worst sector for the week.

Commenting on the market performance, analysts at Vetiva Research said : “The uptrend of the NSE  ASI was limited by profit taking action by investors in today’s trading session. However, we expect the equities market to remain positive next week (evidenced by increased transaction sizes, strong positive market breadth as well as renewed investors confidence), though profit taking action continues to pose a threat.”

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On stocks to watch, Vetiva analysts said : “On the Bid Cart: Guinness  Nigeria maintained its bullish performance, closing 10.00 percent  above its opening price for the day to settle at ₦28.60. Prior to its two consecutive days of capital appreciation, Guinness has lost over 67.08 percent of its value YtD. The counter however gained 20.68 percent Week to Date,  WtD subsequently reducing its YtD loss to -59.20 percent.”