A slightly positive close (+0.03percent) on Tuesday is an indication of a possible reversal in the recent negative trend on the Nigerian bourse. The gradual return of buy-side activities, which pushed stocks value higher by N6 billion on Custom Street, was driven by interests in low-priced but value countered.
Only this February, bear reign has forced the Nigerian stock market to decrease by 5.30 percent, thereby re-routing the market to the negative region (-0.26percent) year-to-date (YtD).
Tuesday’s positive close came as investors who raised bets in stocks like Livestock Feeds (+7.15percent), AIICO (+7.14percent), Flour Mills (+6.16percent), Zenith Bank (+4.84percent) and Cutix (+4.65percent) saw reentry opportunities. This is in addition to their expectations of attractive dividend yields in the earnings season.
As more investible funds are being channelled away from the equities market into the fixed income (FI) market, market watchers had expected bearish sentiment to persist in the short term –thereby recommending a cautious trading strategy.
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The Nigerian Stock Exchange (NSE) All-Share Index (ASI) increased by 0.03percent from 40,154.09 points to 40,164.86 points, while market capitalisation increased by N6billion, from N21.008trillion to N21.014trillion.
In 5,232 deals, investors exchanged 337,955,177 units valued at N3.845billion. FBN Holdings, Zenith Bank, Transcorp, United Capital and UBA were actively traded stocks Tuesday on the Nigerian Stock Exchange.
