Banking Stocks Drive N174bn Capital Market Gain
The nation’s stock market witnessed a rebound on Thursday as investors gained N174.4bn on the back of gains in the banking sector.
Analysts at Afrinvest Securities Limited said major price appreciation in Guaranty Trust Bank Plc, Zenith Bank Plc and Access Bank Plc drove the All-Share Index up by 17 basis points to 28,140.41bps.
Consequently, the year-to-date return improved to 4.8 per cent while market capitalisation rose from N14.47tn to N14.50tn.
However, activity level weakened as volume and value traded fell by 9.4 per cent and 19.9 per cent to 317.19 million units and N3.43bn respectively.
The most active stocks by volume were FBN Holdings Plc (57.3 million units), First City Monument Bank Plc (43.2 million units) and Zenith Bank (34.3 million units) while Nigerian Breweries Plc (N1.2bn), Zenith Bank (N705.5m) and FBN Holdings (N345.6m) led the top traded stocks by value.
Performance across sectors was mixed as three indices gained.
The banking and insurance indices led gainers, up by 3.54 per cent and 0.11 per cent respectively due to buying interest in GTB, Zenith Bank and Law Union and Rock Insurance Plc.
The oil and gas index rose on the back of gains in Oando Plc.
Conversely, the industrial goods index declined the most due to major price depreciation in BUA Cement Plc.
Major losses in Nascon Allied Industries Plc, International Breweries Plc and MTN Nigeria Communications Plc dragged the AFR-ICT and consumer goods indices down by 0.68 per cent and 0.12 per cent respectively.
Investor sentiment strengthened as market breadth (advance/decline ratio) improved to 1.4x from the 0.9x recorded in the previous trading session as 20 stocks advanced relative to 14 decliners.
The top five gainers were Law Union and Rock Insurance Company, Wema Bank Plc, Nigerian Aviation Handling Company Plc, FCMB and Fidelity Bank Plc, whose respective share prices gained 9.8 per cent, 7.6 per cent, 7.3 per cent, 5.4 per cent and 5.3 per cent.
C & I Leasing Plc, Daar Communications Plc, Africa Prudential Plc, Lasaco Assurance Plc and Nascon led the laggards with their respective share prices shedding 9.8 per cent, 8.3 per cent, 5.3 per cent, 3.8 per cent and 3.3 per cent.
“We expect the bearish sentiment to persist for the rest of the week. However, we note that there are opportunities for bargain hunting,” analysts at Afrinvest said.