Stock Market Rebounds, Gains 0.53% on Bargain Hunting

Goddy Egene

The stock market rebounded yesterday following bargaining hunting in banking and consumer goods counters. The market had opened for the week on Monday with a decline of 0.32 per cent. However, the losses were pared yesterday, leading to a growth of 0.53 per cent in the Nigerian Stock Exchange All-Share Index (NSE ASI) to be at 35,516.21.

In the same vein, market capitalisation added N74.8 billion to close higher at N12.96 trillion.

The positive performance of the equities market was buoyed by the price appreciation in banking and consumer good tickers particularly GTBank Plc, Access Bank Plc, United Bank for Africa (UBA), Dangote Sugar Refinery Plc.

Commenting on the market performance, analysts at Meristem Securities Limited said as investors take advantage of the relatively cheap prices of counters in the bourse, the market closed in the positive zone, with all sectors recording gains save for the Insurance sector.

“However, we foresee the market closing negative this week, owing to projected profit taking activities on Dangote Cement Plc,” they said.

Similarly, analysts at SCM Capital Limited said in the interim, they maintain their conservative outlook, underpinned by continued apathy towards the market as the 2019 electoral cycle draws nearer amid sustained capital flow reversals in emerging/frontier markets.

Meanwhile, a look at the price movement chart showed that 33 gainers and 16 losers. The gainers were led by Portland Paints with 9.7 per cent, trailed by Jaiz Bank Plc and Caverton Offshore with 9.6 per cent apiece. May & Baker Nigeria Plc, Livestock Feeds Plc and Cornerstone Insurance Plc garnered 9.2 per cent, 9.0 per cent and 8.7 per cent respectively.

Top price gainers included: Japaul Oil and Maritime Services Plc (8.3 per cent); Diamond Bank Plc, Union Diagnostic and Clinical Services Plc ( 7.4 per cent); PZ Cussons Nigeria Plc (7.2 per cent); Honeywell Flour Mills Plc (7.2 per cent) and Mutual Benefits Assurance Plc (6.9 per cent).

Conversely, Ikeja Hotel Plc led the price losers with 9.9 per cent, trailed by NPF Microfinance Plc with 9.3 per cent. Linkage Assurance Plc shed 7.4 per cent, just as Glaxosmithkline Consumer Nigeria Plc went down by 6.6 per cent. Other top price gainers to Custodian Investment Plc (6.4 per cent); Skye Bank Plc (5.4 per cent); Regency Alliance Insurance Plc, A.G Leventis Nigeria Plc (4.5 per cent each).

At the close trading, four of the five sectors appreciated led by the NSE Banking Index with 1.7 per cent. The NSE Oil & Gas Index gained 0.7 per cent. The NSE Consumer Goods Index rose 0.3 per cent.