Nigeria stock market gained about N77billion on Wednesday February 20, 2019 as investors snapped up the shares of Nigerian Breweries Plc and that of 25 other companies.
The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.64percent, while the Year-to-Date (ytd) return stood at 3.77percent.
The All Share Index closed at 32,614.05 points against the preceding day high of 32,406.18 points while Market Capitalisation increased to N12.162 trillion as against preceding day close of N12.085 trillion.
“Our investment case for Nigerian equities suggests that if the risks already priced into markets do not materialize – which is our view – this might drive a bullish momentum,” said analysts at United Capital Plc in their February 20 noted titled “2019 Equity Strategy: Piloting a hazy flight”.
In their investment case, they highlighted the potential for the equity market to rally after elections “since equities could likely respond once the jittery political climate that characterised most of 2018 clears up.” “Furthermore, valuations are looking attractive. Investors looking to increase their long-term equity allocations could consider buying ahead of a post-election recovery story.”
At the close of trading on Wednesday, the volume of stocks traded increased by 22.65percent, from 361.8million to 443.7million, while the total value of stocks traded increased by 35.63percent, from N4.160 billion to N5.642 billion in 4,697 deals. Sterling Bank Plc, GTBank Plc, UBA Plc, Access Bank Plc and Transcorp Plc were actively traded stocks on the NSE.
Nigerian Breweries Plc recorded the highest gain after its share price increased from N75 to N82.5, adding N7.5 or 10percent. Mobil Nigeria Plc followed after its share price increased from N168.2 to N170, adding N1.8 or 1.07percent.
Dangote Flour Mills Plc also rallied from N9.45 to N9.95, adding 50kobo or 5.29percent; UAC of Nigeria Plc stock price advanced from N8.5 to N9, adding 50kobo or 5.88percent, while the share price of Zenith Bank Plc advanced from N25.35 to N25.8, adding 45kobo or 1.78percent.
Nestle Nigeria Plc stock price declined most by N20, from N1600 to N1580, losing 1.25percent. Unilever Nigeria Plc followed after its share price declined from N43.6 to N43, losing 60kobo or 1.38percent. Custodian Investment plc lost 45kobo, from N6.55 to N6.1, losing 6.87percent.
GlaxoSmithKline Consumer Nigeria Plc declined from N12 to N11.55, losing 45kobo or 3.75percent; while Flour Mills Nigeria Plc dipped from N21 to N20.75, losing 25kobo or 1.19percent.
The Financial Services sector led the activity chart with 362.3 million shares exchanged for N3.298 billion; while Conglomerates followed with 28.704 million shares traded for N65million.
Iheanyi Nwachukwu
