Nigerian Stocks continued its bullish run today for the 12th consecutive session, as increased bargain-hunting across the sectors netted N708.14 billion gains in today’s trading session. This brings the net capital gains in the three trading sessions in October to N1.085 trillion.
Consequently, the average year-to-date return improved to a whopping 7.62%.
- The All Share Index appreciated by a remarkable 4.92% to cross 28,909.37 points from its opening index of 27,554.49 points. Also, the aggregate market value of all quoted equities rose from its opening value of N14.202 trillion to settle at N15.110 trillion.
- Market turnover soared to 749.46 million shares valued at N9.49 billion in 8,075 deals. Transactions in the shares of Zenith Bank topped the activity chart with 135.69 million shares valued at N2.77 billion.
- UBA followed with 112.88 million shares worth N768.1 million, while FBN traded 89.9 million shares valued at N544.4 million.
Bullish sector performance buoyed the ASI as all sectoral indices closed positive. - With 45 gainers to 8 losers, all sectoral indices closed positive.
- The NSE Banking Index led to a massive gain of 7.48%. The NSE Industrial and Consumer Goods Indices trailed appreciating by 5.46 and 2.95% respectively. The NSE Oil & Gas Index appreciated by 1.15% while the NSE Insurance Index finished with a 0.26% increase.
- NSE Banking Index: Recorded an impressive 7.48% gain, on uptrend in FBNH (+9.91%), ZENITH (+9.47%), UBA (+9.30%), GTB (+6.03%) and STANBIC (+4.94%).
- NSE Industrial Index: Up by +5.46%, on DANGCEM (+9.86%) and WAPCO (+9.69%) upturn.
- NSE Consumer Goods Index: Gained 2.95%, on buy interest in NB (7.17%), GUINNESS (+6.00%), and DANGSUGAR (+4.55%)
- NSE Oil & Gas Index: Appreciated by 1.15%, on the back of the gains in OANDO (+9.57%) and ARDOVA (+8.97%).
- NSE Insurance Index: Improved by +0.26%, on price appreciation in CORNERSTONE (+10.00%)
READ: NSE’s market capitalization rises to N13.2 trillion, as investors gain N46 billion
Top gainers
PRESCO up 10.00% to close at N60.5
DANGCEM up 9.86% to close at N158.2
NB up 7.17% to close at N52.3
MTNN up 5.70% to close at N142
STANBIC up 4.94% to close at N42.5
Top losers
NPFMCRFBK down 8.76% to close at N1.25
WAPIC down 7.69% to close at N0.36
BERGER down 6.15% to close at N6.1
NEIMETH down 5.13% to close at N1.85
REDSTAREX down 1.52% to close at N3.25
READ: Nigerian lady narrates how the FGN bonds helps her save properly
Outlook
It is fair to say institutional investors are back at Sub Sahara’s biggest Exchange, printing impressive gains, as the Nigerian bourse market capitalization tilted above N15 trillion.
- Unsurprisingly buying pressure was maintained in notable Nigerian Stocks, like MTN Nigeria, Dangote Cement, Nigerian Breweries, and Stanbic Bank
- Market liquidity had also improved in the last few days as Institutional investors restrategize their portfolio investments for Q4, 2020.
Its to seem stock traders are not short of positive macros now, as Nigeria’s major export, crude oil printed more than 3% gains to trade near $43/Barrel. - Nairametrics however envisages caution, among these impressive gains recorded in the past weeks, as Africa’s largest economy remains vulnerable via a report credited to Fitch Ratings buttressed the FX demand backlog and persistence in external vulnerability are adequately captured by the ‘B’ rating.
- It should also be noted this bullish trend is not broad-based as only a few Nigerian Stocks across the spectrum have benefited from the rally.
this is a consequence of the CBN policy on the money market instruments, in a bid to reduce interest rate and boost lending to the real sector at a low-interest rate