Nigeria equities gain over N400bn as buyers eye dividend income

In the trading week ended Friday March 26, listed stocks on the Nigerian Exchange (NGX) Limited advanced in value by about N436billion as investors continued to hunt for bargains with eyes on corporate releases and dividend announcements.

Equities market trading statistics show investor bought industrial stocks as evidenced in the sector’s weekly gain of +2.94percent and consumer goods which rose by +1.41percent. Though other sectoral indices closed the week in green: insurance (+0.94percent), oil & gas (+0.74percent), and banking stocks (+0.21percent).

The Nigerian Stock Exchange (NSE) All-Share Index appreciated by 2.17percent in the review trading week, from week-open low of 38,382.39 points to 39,216.20 points; while the value of listed stocks on the Bourse increased from N20.082 trillion to N20.518trillion.

Many investors saw reentry opportunities in most value counters after disappointing outing in February pushed their prices to record lows. Month-to-Date (MtD), the market has yielded negative return of 1.47percent while this year’s negative return moderated to -2.62percent.

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This year’s negative return is fueled by Transcorp Hotel (-33.7percent), UBA (-21.4percent), Wema Bank (-13percent), Zenith (-11.3percent), Sunu Assurance (-26.7percent), FTN Cocoa (-30.3percent), Africa Prudential (-16percent), Berger Paints (-11.6percent), Cadbury (-10percent), Conoil (-18.2percent), ETI (-16.7percent), FCMB (-10.5percent), Japaul Gold (-30.6percent), Oando (-10.8percent), Transcorp (-10percent), among others.

Despite the record positive in the review week, Friday’s negative close (-0.19percent) strengthens market watchers warning for investors not to rule out the possibility of profit-taking by speculative buyers, which is capable of swinging the market back into negative territory.

Despite last month’s record loss, stocks where investors have made money this year include: Lasaco (+268.6percent), Champion Breweries (+146.5percent), BOC Gas (+42.2percent), Guinness (+57.9percent), Mutual Benefit (+44.4percent), Seplat (+36.7percent), Livestock Feeds (+25.9percent), Stanbic IBTC (+18percent), UACN (+20percent), Wapic Insurance (+27.5percent), Ardova (+12.2percent), Unity Bank (17.2percent), Flour Mills (+10.8percent), Julius Berger (+15.4percent),