NSE Index Rebounds, Nicks 0.46% | Independent Newspapers Limited
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NSE Index Rebounds, Nicks 0.46%

NSE Index Rebounds, Up 0.08%
Posted: Aug 31, 2016 at 6:59 am   /   by   /   comments (0)

Bamidele Ogunwusi

Lagos

Trading on the floor of The Nigerian Stock Exchange (NSE) experienced a rebound on Tuesday when the overall performance measures, the All Share Index and market capitalisation, both appreciated by 0.46 percent each.

The All Share Index gained 124.71 basis points or 0.46 percent to close at 27,493.12 points as against 27,368.41 points recorded on Monday, while market capitalisation appreciated by N42.830 billion to close at N9.442 trillion as against N9.399 trillion recorded at the last trading day.

Reflective of the impact of low base, value traded spiked by 285.5% to settle at N2.7 billion, just as the volume traded surged by 174.5% to 230.1 million units. Market breadth also inched higher to 0.9x (previously 0.6x) as 17 stocks appreciated against 18 decliners.

Petroleum marketer, Mobil Nigeria, led the advancers’ table when it appreciated by 735 kobo to close at N170.00 per share, followed by building materials’ Dangote Cement, which grabbed 200 kobo to close at N175.50 per share.

Nigerian Breweries nicked 173 kobo to close at N140.00 per share; Guaranty Trust Bank gained 35 kobo to close at N26.30 per share while Dangote Sugar Refinery added 28 kobo to close at N6.78 per share, among other.

Food products-diversified major player, Nestle Nigeria, led the decliners’ table when it went down by 885 kobo to close at N816.15 per share, followed by petroleum marketer, Forte Oil, which shed 200 kobo to close at N175.00 per share. Presco slipped by 99 kobo to close at N39.50 per share, Zenith Bank lost 40 kobo to close at N14.90 per share, while Africa Prudential dropped 10 kobo to close at N2.55 per share, among others.

Ecobank Transnational Incorporated emerged the most traded equity on Monday with an exchange of 52.565 million shares worth N596.902 million.

Zenith Bank having accounted for 17.139 million shares valued at N258.120 million while NEM Insurance sold 15.028 million shares worth N12.447 million trailed it.

Fidelity Bank exchanged 12.941 million shares valued at N12.048 million while Guaranty Trust Bank traded 12.563 million shares worth N329.712 million.

At the close of NSE trading on Tuesday, the industrial goods sector closed the day higher with a positive daily return of 1.1 per cent mostly driven by gains recorded in Dangote Cement (+1.2%).

Similarly, the consumer goods sector posted a gain of 0.8 per cent, as a result of price appreciation in 7UP Bottling Company (+9.5%) and Nigeria Breweries (+1.3%).

On the flip side, the Financial Services sector trailed with a loss of 0.4% on the back of profit-booking in FIDELITY (-4.2%), Sterling Bank (-4.0%) and Zenith Bank  (-2.3%), while the Oil and Gas sector followed suit with a negative daily return of 0.2% underscored by losses in Conoil (-5.0%) and FO (-1.1%).

Experts at United Capital believe that the rally can be attributed to bargain hunting in certain key sectors with the Industrial Goods sector leading gains because of price appreciation in bellwether Dangote Cement.

We expect a quiet trading session tomorrow as investors shift attention to a flurry of economic data set to be released.