Stocks rally N151bn gain to retain uptrend

Equities make rebound attempt with N30bn gain In a struggle between the bear and bull camps, the bulls managed to reclaim the trading floor of the Nigerian Exchange Limited on Wednesday by closing the session on N30 billion gain. The gain of the day was however a mere attempt to recover a whooping loss of N340 billion to sell-offs in the preceding session. Business Metrics also observed that the N30 billion profit was a narrow escape from another bearish experience that prevailed for most of trading hours of the day before activities in the shares or MTN Nigeria at the eleventh hour averted the crisis and thus, spurred the first gain of the week. As MTN gained 1.2 per cent to close the day, the benchmark index inched higher by 0.15 per cent to 38,564.70 basis points, while market capitalisation followed suit to close higher at N20.099 trillion. Consequently, the Month-to-Date (MtD) return increased to +0.3 per cent, while the Year-to-Date (YtD) loss moderated to -4.2 per cent. Sectoral performance was mixed, as the Oil & Gas and consumer goods indices gained +0.9 per cent and +0.2 per cent respectively, while the insurance and banking indices closed in the red by -0.5 per cenr and -0.3 per cent in that order. The Industrial Goods index was flat. Turnover for the session was mixed as total volume traded increased by 1.81 per cent against shrinking trade value that plunged by 23.02 per cent. At the close of the session, investors collectively traded 302.72 million share units, valued at N2.81 billion, and exchanged in 4,387 deals. This is in contrast with 297.34 million shares worth N3.65 billion that exchanged hands in 4,402 transactions in the previous session. According to trading statistics obtained from the Nigerian Exchange Limited, STERLNBANK was the most traded stock by volume at 37.47 million units, while GUARANTY was the most traded stock by value at N745.34 million. As measured by market breadth, market sentiment turned positive (1.4x) as 27 tickers gained, relative to 20 losers. CORNERST and MORISON recorded highest gains of the day as they appreciated by 10.0 per cent and 9.7 respectively. On the flip side, while both ABBEYBDS and CHIPLC shed -9.5 per cent in share prices to top the losers’ list.

Stocks rally N151bn gain to retain uptrend


 

 

Collective performance of the Nigerian stock market remained positive on Wednesday as Tuesday’s bullish outlook spilled over with the All-Share Index (ASI) appreciating by 0.7 per cent to 39,170.95 basis points.

This amounted to N151 billion profit for investors who went all the way to the bank as the session was bouyed by strong buying interest in the shares of Dangote Cement (+2.2 per cent), Okomu Oil (+9.8 per cent), and GTBank (+1.8 per cent).

Consequently, the market’s year to date (YtD) loss moderated to -2.7 per cent with the market capitalisation rising to N20.416 trillion from N20.26 trillion the equities market closed the previous session.

The level of trading activity was mixed as the volume traded declined 16.9 per cent to 181.5 million units while the value traded rose by 149.0 per cent to N4 billion. The most traded stocks by volume were Zenith Bank (20.8m units), Sterling Bank (19.4m units), and GTBank (15.1m units), while Nestle Plc (N1.4bn), Dangote Cement (N518.0m), and Zenith Bank (N476.1m) led by value.

Across the various sectors, performance was bullish as five indices gained while the ICT index closed flat.

Leading the gainers’ table was the industrial goods index, up 1.3 per cent due to buying interest in Dangote Cement (+2.2%) and Wapco Plc (+4.2%).

Similarly, the banking and insurance indices gained 1.3 per cent and 0.4 per cent respectively on the back of price appreciation in GTBank (+1.8%), Stanbic IBTC (+1.1%), Mutual Benefits Assurance (+4.6%), and NEM Insurance (+0.5%).

Similarly, the consumer goods and oil & gas indices rose by 0.3 per cent and 3 basis points respectively due to price uptick in Flour Mills of Nigeria (+2.7%), Nascon Plc (+7.4%), Conoil Plc (+10.0%), and Oando Plc (+0.3%).

Investor sentiment in the market strengthened to 4.2x from 0.9x in the last trading session as 25 stocks advanced while 6 stocks declined. Cutix Plc (+10.0%), Okomu Oil (+9.8%), and Union Bank Nigeria (+9.4%) led gainers while Sovereign Trust Insurance (-3.6%), Jaiz Bank (-3.4%), and FCMB (-1.6%) led decliners.

The NSE 30 Index recorded an increase of 0.90 per cent Wednesday to close at 1,594.44 points as against 1,580.17 points on Tuesday. Market turnover closed with a traded volume of 113.30 million units. Okomu Oil and Union Bank Nigeria were the key gainers, while FCMB and First Bank Holding were the key losers.

Bonds Market

The FGN bonds secondary market closed on a flat note as the average bond yield across the curve remained unchanged at 9.75 per cent. The average yields across the short tenor and long tenor of the curve remained unchanged.

However, the average yield across the medium tenor of the curve expanded by 1 basis point. The 27-MAR-2050 maturity bond was the best performer with a decline in yield of 6 basis points, while the 17-MAR-2027 maturity bond was the worst performer with an increase in yield of 3 basis points.

FX market

In the currency market, the naira traded at N502 to the greenback in the parallel market while at the I&E FX market, naira appreciated by 0.13 per cent as the dollar was quoted at N410.95 as against the last close of N411.50. Most participants maintained bids between N400 and N421.96 per dollar.

Treasury Bills market

The NT-Bills secondary market closed on a flat note, with the average yield across the curve remaining unchanged at 6.26 per cent. Average yields across short-term, medium-term, and long-term maturities closed flat at 4.03 per cent, 5.51 per cent, and 8.22 per cent, respectively.

At the Primary Market Auction held Wednesday, the CBN offered NT-Bills worth N91.27 billion across the 91-day (N4.74 billion), 182-day (N7.82 billion), and 364-day (N78.71 billion) tenors.

In the OMO bills market, the average yield across the curve decreased by 12 basis points to close at 9.65 percent as against the last close of 9.77 per cent. Buying interest was seen across long-term maturities with the average yield compressing by 24 basis points.

However, the average yields across short-term and medium-term maturities remained unchanged. Yields on 9 bills compressed with the 22-Feb-22 maturity bill recording the highest yield decline of 48 basis points, while yields on 13 bills remained unchanged.