The Nigerian stock market joined its global peers to start the new year on a rally, ensuring there was no immediate hangover after the closing gains of 2019.
Closing last day of the year in the green, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) opened the year on a positive note with 0.10 percent year-to-date performance to add 25.72 points and closed Thursday with a trade of 26,867.79. This was after the market lost almost 15 percent in 2019.
The gain on Thursday holds the record as one of the few times the market has closed in the green on the first trading day of a new year and more important as it marks the first trade of a new decade. The 1.5 percent gain in 2013 remains the best record in the period.
The Nigerian stock market, which closed on Wednesday for New Year’s Day, wrapped up the year 2019 in green amid year-end portfolio rebalancing ahead of new year positioning. Following that positive on Tuesday, December 31, the record 2019 negative return moderated to -14.6 percent. The increased rally in the last week of 2019 pushed the positive returns higher by 1.61 percent.
“The rally last week was mainly down to end-of-year rebalancing on some bellwethers. Furthermore, bargain hunting in oil & gas and industrial stocks has been the key lift for the market,” Ayorinde Akinloye, a consumer goods analyst at Lagos-based CSL Stockbrokers, said.
Nigerian stock market performed poorly in 2019 largely due to low investor sentiments in the country that was dragged by unclear policies and tough economic environment.
The key advancers of the Thursday trade as compiled from the NSE included MTNN, Dangote Sugar, FBNH, Vitafoam and UACN.
MTN Nigeria closed at N109 per share, a 3.81 percent increase from the previous market trade of N105. Dangote Sugar, FBNH followed in the same vein as they both reported 2.94 percent and 5.69 percent rally. Vitafoam and UACN also closed the market with a trade of N4.7 and N8.9, respectively, 6.82 percent and 3.49 percent increase from the previous market trade.
BusinessDay analysis of the global market performance for the first day trade of 2019 revealed that the All Country World Index (MSCI’s ACWI), broadest index of world shares, added 0.2 percent to December’s 3.3 percent jump and the 24 percent gained in 2019.
Europe’s main markets gained 0.4 percent to 0.8 percent, following Asia higher in their first trading session of the new decade.
In the same vein, the S&P 500 e-minis was up 0.4 percent, a suggestion that the Wall Street may have recorded similar gains.
Benchmarks closed in the green on Tuesday as President Trump confirmed that US-China trade deal would be signed on January 15.
The Dow Jones Industrial Average (DJI) rose 76.3 points or 0.3 percent to close at 28,538.44 and the Nasdaq Composite Index closed at 8,972.60, gaining 26.61 points or 0.3 percent. The fear-gauge CBOE Volatility Index (VIX) decreased 7 percent to close at 13.78.
In the last trading day of 2019, investors finally got a sign of relief on the US-China trade front as President Trump tweeted that the Phase 1 US-China trade deal would be signed on Jan 15 at the White House, where high-level representatives from China would be present.
Trump also mentioned in the tweet that he would be going to Beijing soon “where talks will begin on Phase Two”. ENDURANCE OKAFOR
The signing of this phase-one deal will definitely lead to a rally among stocks, especially those with high exposure to China, industry experts said.
