Seplat, PZ, other stocks push market higher by 0.64%

Nigeria’s equities market opened the new week on a positive note, rising by 0.64 percent or N376billion at the close of trading on Monday.

The market’s record rally was caused by investors who bought mostly the shares of Seplat Energy Plc, PZ Cussons and Champion Breweries.

The federal government has officially approved Seplat Energy’s purchase of Exxon Mobil’s onshore assets valued at $1.28billion.

Seplat share price rose most on the local bourse, from N5,217.20 to N5,738.20, adding N521 or 9.99 percent, while PZ increased from N19.70 to N21.65, adding N1.95 or 9.90 percent. Champion Breweries Plc rose from N3.42 to N3.75, adding 33kobo or 9.65percent.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation increased from preceding day’s 98,070.28 points and N59.425billion to 98,690.61 points and N59.801 trillion.

Read also: UBA grows Q3 pre-tax profit by 20% to N603bn

“We expect market participants to react quickly to the latest earnings releases of listed firms across the NGX,” said equity market analysts at Vetiva in their October 21 report.

In 8,281 deals, investors exchanged 405,022,661 shares worth N27.568billion. UBA, Sterling, Access Holdings, Nigerian Breweries and FCMB Group were actively. The market’s year-to-date (YtD) return stood higher at 31.99 percent while this month it is up by 0.14 percent.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market. “Nevertheless, the bulls will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market.

“Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns,” according to Lagos-based United Capital research analysts.