Equities extend gains as investors anticipate Q3 releases

Given the bullish momentum recorded on Thursday and Friday at the floor of the Nigerian Exchange Limited, the All-Share Index rose Week-on-Week by 0.05 per cent to settle at 38,962.28 basis points, as investors begin to take position for the release of third quarter financial results.

The stock market had opened the week moderating by 0.10 per cent amid renewed profit taking, as Guaranty Trust Holding Co, PZ Cussons and Zenith Bank shares shed value.

Index was further down on Tuesday, shedding 0.08 per cent, as market transactions came on weak amid investor’s sell-off on Tier-1 banks such as ZENITHBANK, GTCO and Access Bank whose share prices suffered setbacks.

Amid the sustained bearish sentiment, especially on banking stocks, Wednesday’s trading session also saw the local bourse dip further by 0.05 per cent.

On Thursday, the domestic market rallied, as bargain hunting of the shares of GTCO, Flour Mills and PZ saw the market ricocheted by 0.06 per cent on renewed positive sentiment.

Banking stocks, especially GTCO and ZENITHBANK, held the market to close the week’s trading session on Friday in the green zone, as their share prices recovered to N27.75 and N23.50 respectively.

The market activity was also bullish, as N3.61bn worth of transactions on FBN Holdings shares took place.

As a result, the Year-to-Date loss of the ASI moderated to 3.25 per cent, leaving sectoral performance positive, as three of the five indices tracked closed northwards. The insurance, oil and gas and industrial indexes fell by 1.75 per cent, 1.38 per cent and 0.23 per cent respectively to close at 187.24, 363.93 and 1,959.04 respectively, while banking and consumer goods fell by 0.43 per cent and 0.04 per cent respectively.

Trading was positive, as high networth investors appeared to be returning to the equities market, given the N3.61bn worth of transactions done on FBNH shares; thus the deals, volume and value of stocks traded rose by 6.91 per cent, 50.71 per cent and 29.48 per cent to 16,745 deals, 1.29 billion units and N13.92bn respectively.

SCOA, PRESCO, NEIMETH, HONYFLOUR and CUTIX led the losers table, as their share prices dropped by -18 per cent, -8 per cent, -8 per cent, -5 per cent and -4 per cent respectively, while NAHCO, CONOIL, CORNERST, COURTVILLE and TRANSCOHOT led the gainers table with 15 per cent, 14 per cent, 12 per cent, 10 per cent and 10 per cent.

In the new week, analysts are positive of an upward movement in the domestic market.

“We expect the equities market index to close in positive territory, as investors take position ahead of companies’ nine months financial results releases,” said analysts at Cowry Asset Management.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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