Equities market gains N11bn as 18 stocks appreciate

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LAGOS, NOVEMBER 2, 2016 – The stock market (equities category) appreciated by N11bn as 18 stocks recorded gains amid 16 laggards.

A total of 187.602 million shares valued at N1.312bn were traded in 3,065 deals.

The Nigerian Stock Exchange market capitalisation rose to N9.36tn from N9.349tn, while the NSE All-Share Index closed at 27,252.48 basis points from 27,220.09 basis points.

The NSE ASI advanced by 0.12 per cent, bringing the year-to-date return to 4.85 per cent (negarive). However, volume traded and market turnover declined by 14.69 per cent and 30.08 per cent, respectively.

Topping the gainers’ chart was Eterna Plc, which appreciated by 9.96 per cent to close at N3.09. The counter was trailed by Okomu Oil Palm Plc, which rose by 9.18 per cent; Redstar Express Plc gained five per cent; Unity Bank Plc appreciated by 4.76 per cent, and Learn Africa Plc posted a 4.29 per cent gain.

On the other hand, UAC Property Development Company Plc led the decliners’ chart, depreciating by 4.92 per cent to close at N3.09. Union Bank of Nigeria Plc, Oando Plc, International Breweries Plc and Sterling Bank Plc recorded 4.87 per cent, 4.86 per cent, 4.62 per cent and 4.44 per cent losses, respectively.

Market performance measured by the NSE sector indices showed that the banking, insurance and food and beverages sectors indices appreciated by 0.39 per cent, 0.11 per cent and 0.03 per cent accordingly, while the oil and gas sector index declined by 0.46 per cent.

“We attribute Tuesday’s positive mood to investors’ reactions to the impressive results released after the close of trading on Monday. We expect this mood to be short-lived in the absence of any positive news inflow,” analysts at Meristem Securities Limited said in a post.

In a related development, the Central Bank of Nigeria conducted an Open Market Operation auction on Tuesday, selling N4bn and N47bn on the 198-day and 345-day bills at respective stop rates of 18 per cent and 18.5 per cent (effective yields: 19.95 per cent and 22.42 per cent).

Despite this, the interbank call rate moderated slightly to 14.50 per cent (previous: 15.50 per cent). At the foreign exchange interbank market, the naira appreciated N4.06 against the dollar to close at N304.75 at the spot market whilst the one year forward rate remained unchanged at N348.14.

Trading in the Treasury bills market remained mixed (albeit with a slightly bullish bias) as yields moderated four basis points on the average.

Analysts at Vetiva Capital Management said, “Considering trading has been tepid so far this week (particularly in the bond space) amid the CBN’s liquidity mop up stance, we expect very cautious trading session ahead of the result of the monthly Primary Market Auction scheduled for Wednesday (today).”

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