Interests In Insurance, Oil Stocks Drive N93bn Gain
On the second-to-the-last trading day of the year 2019, the nation’s stock market saw a renewed interest of investors, particularly in insurance and oil and gas stocks.
Investors gained N93.1bn as the market capitalisation of equities increased from N12.753tn on Friday to N12.846tn on Monday as four sectors recorded gains.
The oil and gas index gained the most, up by 5.1 per cent due to price appreciation in Seplat Petroleum Development Company Plc and Oando Plc.
The consumer goods, insurance and industrial goods indices trailed, gaining 2.1 per cent, one per cent and 0.4 per cent, respectively, driven by buying interest in Nestlé Nigeria Plc, NEM Insurance Plc and Dangote Cement Plc.
On the flip side, the banking and AFR-ICT indices lost 0.7 per cent and 0.5 basis points, respectively, on the back of declines in Union Bank Nigeria Plc, Access Bank Plc and Chams Plc.
Overall, the market recorded a 0.73 per cent gain as the All Share Index increased by 73bps.
Activity level improved as volume and value traded advanced by 72 per cent and 136.4 per cent to 382.807 million units and N7.186bn, respectively.
The top traded stocks by volume were Transnational Corporation of Nigeria Plc (138.9 million units), Guaranty Trust Bank Plc (48.4 million units) and Access Bank Plc (45 million units) while Dangote Cement (N1.6bn), MTN Nigeria Communications Plc (N1.5bn) and GTB (N1.4bn) emerged the top traded stocks by value.
Investor sentiment strengthened as market breadth (advance/decline ratio) weakened to 2.0x from 2.7x recorded on the previous trading day as 24 stocks gained while 12 declined.
The top gainers were Union Diagnostic and Clinical Services Plc, NEM Insurance, Eterna Plc, UACN Property Development Company Plc and Wema Bank Plc, whose respective share prices gained 10 per cent, 10 per cent, 10 per cent, 9.8 per cent and 9.4 per cent.
The top losers were C & I Leasing Plc, Learn Africa Plc, Union Bank, Unity Bank Plc and Transnationwide Express Plc, which recorded respective share price decline of 10 per cent, 9.6 per cent, 9.6 per cent, 8.3 per cent and eight per cent.
“Despite the positive performance recorded in today’s trading session, we believe bearish sentiment will resurface as investors’ appetite towards the local bourse remains weak,” analysts at Afrinvest Securities Limited said in a note.