34 stocks edge up market capitalisation by N69 billion

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The Nigerian Stock Exchange (NSE)

Nigerian Stock Exchange’s market capitalisation appreciated by N69 billionn as 34 stock recorded gains at the close of trading on Wednesday.

The market capitalisation rose to N9.182tn from N9.113tn, while the All-Share Index closed at 26,688.25 basis points from 26,486.02 basis points.

A total of 131.741 million shares worth N1.247bn exchanged hands in 2,257 deals.

Coming off a two-session holiday, the NSE ASI rose by 0.76 per cent supported by firm gains across most key sectors.

The oil and the consumer goods sector snapped a five-session downtrend to lead advances in Wednesday’s session owing to gains across Nascon Allied Industries Plc, Cadbury Nigeria Plc and Nigerian Breweries Plc by 8.48 per cent, 7.98 per cent and 3.26 per cent, respectively.

Also, the oil and gas sector extended its rally bolstered by advances in Mobil Oil Nigeria Plc, Oando Plc and Total Nigeria Plc by 4.29 per cent, two per cent and 1.1 per cent, respectively.

The financial services sector swung into positive territory following gains in most of the banking stocks. Stanbic IBTC Holdings Plc, Access Bank Plc, FBN Holdings Plc and Zenith Bank Plc appreciated by 4.96 per cent, 4.92 per cent, 2.94 per cent and 1.66 per cent, respectively.

The industrial goods sector, however, closed flat following mixed performances across Ashaka Cement Plc, which appreciated by 4.09 per cent, and Lafarge Africa Plc, which dropped by 0.12 per cent.

Market breadth turned positive with 34 advances and 17 declines

Commenting on the performance of the market, analysts at Vetiva Capital Management Limited, in the firm’s daily market analysis, said, “In the coming session, we expect the market to remain in the green given the decent investor appetite observed today even as market breadth turned markedly positive.”

Global markets traded mixed amid thin volumes with major indices trending in different directions. While the Nikkei 225 closed flat, the FTSE traded higher. Meanwhile, the United States futures pointed to a flat open ahead of a deluge of economic data.

Meanwhile, amid relatively unchanged liquidity, the interbank call rate declined 384 basis points to 15.33 per cent. Meanwhile, at the foreign exchange interbank market, naira remained unchanged at N305.25 and N378.00 against the dollar for the spot rate and one year forward rate respectively.

The Treasury bills market traded mixed with yields declining 10 basis points on average. While yields on short to mid-dated bills moderated, yields advanced across the long end of the space.

Notably, yields on the 22 day-to maturity, 85DTM and 190DTM declined to 14.85 per cent, 10.83 per cent and 19.46 per cent, respectively, while the most significant advances were seen on the 197DTM and 232DTM with their respective yields closing at 19.78 per cent and 20.90 per cent.

The bond market also traded mixed, however, buying was concentrated on the long end of the space with yields on the 12.1493 per cent FGN July 2034 and the 10.00 per cent FGN July 2030 declining six basis points and four basis points, respectively, to close at 15.60 per cent and 15.85 per cent.

Barring any liquidity mop up from the apex bank today (Thursday), the analysts expect the anticipated Open Market Operation maturity (due today) to support buying sentiment – particularly at the short end of the curve.

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