Nigerian stock market closed positive on the first trading day of this week (Monday August 5) driven by increasing buy decisions in favour of value stocks like Dangote Flour Mills Plc, MTN Nigerian Communications Plc, Cement Company of Northern Nigeria Plc, among others.
The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.15percent at the sound of trade closing gong, while the Year-to-Date (ytd) return stood at -11.97percent.
Lagos-based research analysts at Afrinvest had expected to see some bargain hunting in early trades this week, “supported by positive earnings releases on some stocks.”
Following the paucity of foreign portfolio investors’ participation in the local bourse, the analysts anticipate that the lingering bearish sentiments would drive a negative close at the end of this week.
The All Share Index closed at 27,669.38 points against the preceding day close of 27,630.46 points while market capitalisation gained N19billion to close at N13.484 trillion against preceding trading day close of N13.465 trillion.
Dangote Flour led the gainers after its share price increased from N18.5 to N20.35, adding N1.85 or 10percent; followed by MTNNN which advanced from N127 to N128.25, after adding N1.25 or 0.98percent.
Also, Cement Company of Northern Nigeria Plc rallied from N12.35 to N13, adding 65kobo or 5.26percent. On the laggards table, ETI Plc led the pack after its share price declined from N8 to N7.2, losing 80kobo or 10percent. Dangote Sugar Refinery Plc also dipped, from N10 to N9.8, losing 2kobo or 2percent, while FBN Holdings decreased from N5.6 to N5.4, after its share price lost 20kobo or 3.57percent.
The volume of stocks traded increased by 73.64percent, from 161.650 million to 280.695 million, while the total value of stocks traded decreased by 70.65percent, from N4.802 billion to N1.410 billion in 3,314 deals.
“While we expect the stock to continue to rally, we do not foresee the gains having significant impact on the Index”, said equity market analysts at Vetiva Securities.
As such, they expect the index to revert to its bearish trading pattern on Tuesday “in the absence of market catalysts”.
Also, Cordros Capital researchers had in their August 2 note said their outlook for equities in the short to medium term remains conservative, “amidst the absence of any catalyst to drive positive market returns.”
On Monday August 5, the Financial Services sector led the activity chart with 253.242 million shares exchanged for N968million, followed by Consumer Goods with 11.026 million shares traded for N250million.
