The Nigerian All Share Index finally ended a 9 day losing streak after it closed on a positive note today. The All share index gained 1.21% to close at 29,311.25 compared to 28,961.67 yesterday. By the close of business about 24 stocks had gained including many blue chip stocks that had dragged the index down for days. But this wasn’t at all easy. The day began with a sharp sell-offs with many stocks losing ground and sending the index to a negative returns of about 1% in the first two hours. For example, GTB which closed at N20.4 yesterday, opened lower at N20 before touching a day low 19.5. From what may have been another year low it ended up closing higher at N21. Dangote Sugar as well, opened lower at N4.7 from its prior day close of N4.94, it will however rebound to close at N5. Oando opened lower today at N15.12 before sinking to a day low of N14.26 and finally closed at N15.12. FBNH was another which opened lower at N7.7 before dropping to a day/year low of N7.4. It will however close higher at 7.99.
Why the change?
A sudden surge in demand for shares around mid day trading pushed up prices and reversed the course of trading. Bids (buyers) outstripped Offers (sellers) which in complying with the law of demand and supply drove prices higher. This could also be related to the fact that Brent Crude prices rose slightly higher today and the uncertainty of the proposed 2015 oil benchmark has also been addressed. Events in the political terrain may also be playing in the minds of investors. The fact is that no one really knows for sure what is driving the market rebound. All we can do is speculate.
Are the Bulls back?
I will not bet on that just yet as this to us is till a relatively bearish market. We can’t bank on the pull back in losses today being sustainable considering how volatile the market has been. There is no indication that the slump in oil price has bottomed out and that the naira has now adjusted to a base price. The election fever is also bound to catch a few more nerves as we approach the new year.
Here is the list of gainers and losers today.