Breweries, cement, oil stocks sustain equities’ rally

Highly capitalised stocks in the breweries, building materials and petroleum-marketing sectors rallied Nigerian equities to a strong start on Monday with a gain of N130 billion. Against the background of sustained rallies in the past two weeks, equities showed a promising outlook at the opening of the stock market this week.

The All Share Index (ASI)-value-based common index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), rose by 1.43 per cent from opening index of 26,441.03 points to close at 26,818.77 points. Aggregate market capitalisation of all quoted companies rose from N9.099 trillion to close at N9.229 trillion. The uptrend helped to improve the average year-to-date return to -6.37 per cent.

Analysis of sectoral indices showed widespread positive sentiments as all the indices closed on the positive side. The NSE Industrial Goods Index appreciated by 2.3 per cent. The NSE Banking Index improved by 1.9 per cent. The NSE Consumer Goods Index rose by 1.7 per cent. The NSE Oil & Gas Index rallied by 1.3 per cent while the NSE Insurance Index appreciated by 1.2 per cent.

Nigerian Breweries led the 27-stock gainers’ list with a gain of N5.05 to close at N123. Total Nigeria followed with a gain of N5 to close at N175. Guinness Nigeria rose by N4.75 to close at N99.75. Lafarge Africa added N2.80 to close at N74. Dangote Cement rose by N2.10 to close at N167.10. Conoil gathered N1.95 to close at N21.01 while CAP chalked up N1.50 to close at N40 per share.

Read also: NSE LIVE! Equities rally as investors scramble for oil stocks

“We are of the view that investors’ sentiment remains stoked by recent reforms by the government, thus we advise investors to maintain early bird positioning in value stocks. Nonetheless, we advise caution as profit taking may set in after consecutive days of uptrend,” Afrinvest Securities-a Lagos-based dealer stated.

Aggregate turnover on Monday stood at 320.99 million shares valued at N2.11 billion in 4,524 deals. The three most active stocks were Access Bank, with 48.60 million shares; United Bank for Africa (UBA), 40.98 million shares and Transnational Corporation of Nigeria, which recorded 34.75 million shares.

On the negative side, MRS Oil and Gas led the 24-stock losers’ list with a loss of N3.94 to close atN36.53. Unilever Nigeria dropped by N1.65 to close at N34.35. G Cappa declined by 72 kobo to close at N13.74 per share. Vitafoam Nigeria dropped by 52 kobo to close at N4.90 while Ecobank Transnational Incorporated and Flour Mills of Nigeria dropped by 50 kobo each to close at N14.56 and N23 respectively.

 

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