Stock Market Rebounds, Records First Gain In 12 Days
The nation’s stock market closed on a positive note at the end of trading on Monday after declining for 11 straight days.
The All-Share Index of the Nigerian Stock Exchange increased slightly by 0.36 per cent to 36,947.10 basis points from 36,816.29bps on Friday.
The market capitalisation of listed equities rose to N13.383tn on Monday from N13.335tn at the close of trading on Friday.
Twenty-one stocks recorded losses on Monday with Oando Plc leading the pack as its share price fell by 8.96 per cent to close at N6.10. It was followed by Cadbury Nigeria Plc, which declined by eight per cent to N11.50 per share.
Presco Plc shed five per cent to close at N71.25 per share; PZ Cussons Nigeria Plc dipped by 4.81 per cent to N20.80, and Sterling Bank Plc dropped by 4.69 per cent to N1.22 per share.
The price appreciation recorded by 21 stocks helped to end an 11-day losing streak, with Japaul Oil & Maritime Services Plc, Custodian and Allied Insurance Plc, Eterna Plc, Guaranty Trust Bank Plc and AIICO Insurance Plc emerging top gainers.
Japaul Oil & Maritime Services gained 9.09 per cent to close at N0.24 per share, while Custodian and Allied Insurance increased by 4.92 per cent to close at N5.12 per share.
Eterna, GTB and AIICO appreciated by 4.90, 4.53 and 3.45 per cent to close at N6.64, N40.40 and N0.60 per share respectively.
The stock market took a serious beating last week, as the market capitalisation fell by N909bn as bears held sway.
The NSE All-Share Index and market capitalisation dropped by 6.38 per cent to close the week at 36,816.29 and N13.336tn respectively.
Similarly, all other indices finished lower with the exception of the NSE ASeM Index that closed flat.
Twenty-eight stocks led by International Breweries Plc recorded losses on Friday, dragging the NSE ASI lower by 3.38 per cent.
The market capitalisation, which peaked at N16.154tn on January 18, 2018, plunged by N467bn on Friday from N13.802tn on Thursday.
Analysts at Vetiva Capital Management Limited noted that the Nigerian equity market shed eight per cent in May as it slumped into negative territory for the year, with a year-to-date return of -0.4 per cent amid a 12 per cent month-on-month dip in market turnover to N4.7bn.
They said, “There was widespread bearish sentiment in the market through the month as foreign investors applied sell pressure even as domestic institutional players remain cautious.
“With no signs of losses abating, we believe negative sentiment will filter into the market at week open.”
