Stock Market Rebounds As Investors Gain N23bn
The equities market on the Nigerian Exchange Limited rebounded from the loss recorded on Monday with investors gaining N23.04bn as the market capitalisation hit N20.61tn.
The NGX All-Share Index rose by 0.11 per cent to 39,550.36 basis points at the end of trading on the floor of the exchange on Tuesday from 39,505.40bps recorded the previous day.
The trading volume dropped by 21.60 per cent as investors exchanged 110.77 million shares valued at N3.08bn in 3,305 deals, compared to 141.28 million shares worth N1.64bn traded in 3,393 deals on Monday.
Industrial firms and the NGX Premium Board led gains as they rose by 1.73 per cent and 1.36 per cent respectively with other indices such as the NGX Main Board (-1.07per cent), Oil&Gas (-0.15per cent), Insurance (-1.17per cent), Consumer Goods (-4.61per cent) depreciating by the end of trading.
Market sentiment, as measured by market breadth, was neutral as the gainers and losers were 16 each.
Honeywell Flour Mills Plc grew by 9.78 per cent, closing at N2.47 per share and leading the gainers’ chart.
Pharma-Deko Plc followed with its 9.24 per cent increase to end the day at N1.30 per share. Wema Bank Plc, Neimeth International Pharmaceuticals Plc and Dangote Cement Plc were the other top gainers on Monday, with +3.70 per cent, +3.66 per cent and +3.31 per cent gains respectively.
The losers’ table was led by SCOA Nigeria Plc, whose share price fell by 9.74 per cent to N1.76.
Nestle Nigeria Plc followed closely with a 9.09 per cent decline, closing at N1,400.00 per share.
FTN Cocoa Processors Plc (-8.51 per cent), Consolidated Hallmark Insurance Plc (-8.16 per cent) and Linkage Assurance Plc (-6.35 per cent) were the other major losers on Tuesday.
“The Lagos bourse halted losses as bullish sentiments return with market performance indicators (NGX-ASI and market cap) both gaining by 0.11 per cent and 0.12 per cent respectively,” said analysts at Atlas Portfolios Limited.
“Positive sentiments were printed on the market by price appreciation in tickers such as Dangote Cement, Honeywell, Transnational Corporation of Nigeria Plc, Sterling Bank Plc, Fidelity Bank Plc, FBN Holdings Plc, Livestock Feeds Plc, Wema Bank, Pharma-Deko,” they added.
Analysts from Cordros Capital noted thhe Nigerian equities market reversed Monday’s loss following bargain-hunting in Dangote Cement.