Stock market opens week on a positive note, gains over N100bn

Despite the reactions of some investors after the presidential and national assembly election results, bargain hunting activities started this week to drive positive trading at the Nigerian Bourse.

As investors rushed to Custom Street to take up undervalued stock, it resulted to the market gaining 0.95percent. The All Share Index (ASI) increased from an open price of 31,827.24 points to 32,129.94 points. The year-to-date (ytd) return increased to 2.23percent.

In 3,428 deals, stock traders exchanged 217,698,665 units value at N2.530billion. UBA Plc, Diamond Bank Plc, Zenith Bank Plc, Access Bank Plc and Transcorp Plc were actively traded stocks on the Nigerian Stock Exchange (NSE).

The value of listed equities increased to N11.981trillion from preceding trading day’s level of N11.868trillion, indicating N113billion gain. International Breweries Plc recorded the highest advanced from N25 to N27, adding N2 or 8percent; GTBank Plc stock price advanced from N35.5 to N36.35, adding 0.85percent or 2.39percent; while Dangote Flourmills Plc increased from N9.9 to N10.4, adding 50kobo or 5.05percent.

Zenith Bank Plc recorded 35kobo gain, from N23.95 to N24.3, up by 1.46percent; while Cutix Plc gained 20kobo, from N2.05 to N2.25, up by 9.76percent.

On the losers table, Dangote Sugar Refinery Plc declined most, from N14.65 to N14.5, down by 15kobo or 1.02percent; followed by GlaxoSmithKline Consumer Nigeria Plc which dipped from N12 to N11.9, after losing 10kobo or 0.83percent.

“Given the reaction of investors to the election results last week, we highlight the possibility of negative sentiment persisting in the market this week.

“That said, we expect bargain hunting to drive positive trading as investors take up undervalued stocks leading to a mixed session at week start,” said Vetiva research analysts in their March 4, 2019 note.

“This week, we expect to see some buying activities particularly in the early part of the week as positive earnings results as well as bargain hunting drive buy interests.

“Nevertheless, we expect this to be short-lived as weak investor sentiment stoked by the on-going elections is expected to weigh on market performance. Thus, we maintain our bearish outlook over the near-term,” said research analysts at Lagos-based Afrinvest in their March 4 note.

 

Iheanyi Nwachukwu