Stock market in mixed performance

Profit-taking in some large-cap stocks has dragged Nigerian equities to a loss of N84.4 billion but investors stepped up bargain-hunting for value stocks ahead of the announcement of the final results of the presidential and National Assembly elections.

With more gainers than losers and 46.6 per cent increase in turnover, the equities market showed underlying positive sentiment. However, losses suffered by some highly capitalised companies including Nestle Nigeria Plc, Nigeria’s highest-priced stock, dragged the overall market position to negative.

Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) dropped from its opening value of N12.194 trillion to close at N12.109 trillion. The All Share Index (ASI)- the main value-based index at the Exchange declined by 226.30 points or 0.69 per cent to close at 32,473.82 points as against its opening index of 32,700.12 points. This moderated the average year-to-date return to 3.32 per cent.

Sectoral indices showed mixed performance, with a swing towards positive. The NSE Banking Index dropped by 1.18 per cent while the NSE Consumer Goods Index declined by 1.57 per cent. Meanwhile, the NSE Insurance Index rose by 3.22 per cent. The NSE Oil & Gas Index appreciated by 1.56 per cent while the NSE Industrial Goods Index inched up by 0.04 per cent.

There were 21 gainers against 20 losers. Nestle Nigeria led the losers with a drop of N70 to close at N1,510. Union Bank of Nigeria followed with a loss of 60 kobo to close at N6.65. FBN Holdings declined by 30 kobo to close at N8 while GlaxoSmithKline Consumer Nigeria, United Bank for Africa and Zenith Bank declined by 20 kobo each to close at N11.80, N8 and N25.80 respectively.

On the positive side, Guinness Nigeria led the gainers with a gain of N2.05 to close at N67.15. Dangote Flour Mills added N1 to close at N12.05 while Oando rose by 65 kobo to close at N7.25.

Total turnover increased by 46.6 per cent to 322.18 million shares valued at N2.43 billion in 4,066 deals.

“Based on market performance today, we advise cautious trading till the final results of the presidential elections are announced,” Afrinvest Securities stated.

Analysts at Cordros Capital noted that in the absence of a positive catalyst, as well as the still tense political milieu, investors should trade cautiously in the short term.

“However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term,” Cordros Capital stated.