The Nation Newspaper

Category: Equities

  • Equities continue decline with N111b loss

    Investors lost N111 billion in capital gains yesterday at the Nigerian Stock Exchange (NSE), increasing the net capital depreciation so far in 2019 to N245.4 billion. For the second consecutive trading session, transactions at the stock market were mostly on the negative with nearly two losers for every gainer.

    The All Share Index (ASI)- the value-based common index that tracks share prices at the NSE, dropped yesterday to 30,771.32 points as against its opening index of 31,070.06 points, representing a decline o 0.96 per cent.  Aggregate market value of all quoted equities also decline from its opening value of N11.586 trillion to close at N11.475 trillion. With this, the average year-to-date return for the two-day trading session in 2019 stood at -2.10 per cent, equivalent to a loss of N245.4 billion.

    With 24 losers to 13 gainers, most sectoral indices closed in the red. The NSE Industrial Goods Index declined by 2.83 per cent. The NSE Banking Index dropped by 2.15 per cent. The NSE Insurance Index slipped by 0.12 per cent while the NSE Consumer Goods Index dropped marginally by 0.02 per cent. However, the NSE Oil and Gas Index rose by 0.64 per cent.

    Stanbic IBTC Holdings led the losers with a loss of N1.95 to close at N46. Guaranty Trust Bank followed with a drop of N1.55 to close at N32.95. GlaxoSmithKline Consumer Nigeria declined by N1.45 to close at N13.05. Cement Company of Northern Nigeria lost 95 kobo to close at N18.45 while CAP dropped by 85 kobo to close at N34 per share.

    On the positive side, Forte Oil rose by N2.70 to close at N30.70. Julius Berger Nigeria added N1.15 to close at N23.25. Union Bank of Nigeria appreciated by 45 kobo to close at N6.05. Nigerian Breweries rose by 40 kobo to close at N78.70 while Vitafoam Nigeria chalked up 17 kobo to close at N4.99 per share.

    Total turnover stood at 169.19 million shares valued at N1.13 billion in 3,688 deals. Diamond Bank was the most active stock with 51.95 million shares valued at N107.2 million. Transnational Corporation of Nigeria occupied a distant second with 12.81 million shares worth N15.58 million while Access Bank placed third with 11.26 million shares valued at N71.4 million.

    “Our outlook for equities in the short to medium term remains conservative, amidst brewing political concerns, and the absence of a positive trigger. However, stable macroeconomic fundamentals remain supportive of recovery in the long term,” Cordros Capital stated.

    Analysts at Afrinvest Securities noted that despite the bearish performance of the market, good bargains in fundamentally sound stocks exist.

    “We expect investors to take positions in these stocks even as pre-election jitters continue,” Afrinvest Securities stated.

    Analysts at SCM Capital Market remained conservative on the near-term outlook for the stock market citing political concerns ahead of 2019 electoral cycle and the absence of a positive driver.

    The ASI had closed 2018 at 31,430.50 points as against the year’s opening index of 38,243.19 points, representing a decline of 17.81 per cent. Aggregate market value of all quoted equities also dropped from its 2018’s opening value of N13.609 trillion to close yesterday at N11.721 trillion, a decrease of 13.88 per cent or N1.889 trillion. Adjusted for additional shares listed recently and in line with the ASI, the net capital depreciation rose to N2.42 trillion.

  • Equities open 2019 with N134.4b loss

    Nigerian equities closed the first trading session of the new year with a net capital depreciation of N134.4 billion, reechoing the downtrend that saw the market closing with a full-year loss of N1.89 trillion in 2018.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed a widespread sell-off as investors sought to take profit on the last-minute rally that closed 2018.

    The All Share Index (ASI)- the value-based common index that tracks share prices at the NSE, closed yesterday at 31,070.06 points as against its year’s opening index of 31,430.50 points. Aggregate market value of all quoted equities also decline from its opening value of N11.721 trillion to close yesterday at N11.6 trillion.

    The ASI had closed 2018 at 31,430.50 points as against the year’s opening index of 38,243.19 points, representing a decline of 17.81 per cent. Aggregate market value of all quoted equities also dropped from its 2018’s opening value of N13.609 trillion to close yesterday at N11.721 trillion, a decrease of 13.88 per cent or N1.889 trillion. Adjusted for additional shares listed recently and in line with the ASI, the net capital depreciation could rise to N2.42 trillion.

    All sectoral indices closed negative with the exception of the NSE Banking Index, which inched up by 0.1 per cent. The NSE Consumer Goods Index declined by 2.3 per cent. The NSE Insurance Index dipped by 1.3 per cent. The NSE Industrial Goods Index declined by 1.2 per cent while the NSE Oil & Gas Index depreciated by 0.7 per cent.

    There were 21 losers against 18 gainers yesterday. Julius Berger Nigeria led the gainers, in percentage terms, with a gain of 10 per cent. Vitafoam Nigeria followed with a gain of 9.5 per cent while Royal Exchange rose by 9.1 per cent. Nigerian Breweries led the losers with a drop of 8.4 per cent. Law Union & Rock Insurance dropped by 8.3 per cent while Honeywell Flour Mills declined by 7.8 per cent.

    Total turnover stood at 214.4 million shares valued at N1.6 billion. Banking stocks dominated the activities chart. Diamond Bank was the most active stock with 50.7 million shares. Zenith Bank followed with 36.4 million shares while Sovereign Insurance placed third with 32.9 million shares.

    The performance of the stock market in 2018 was a reversal of the strong gain recorded in 2017, when equities posted average full-year return of 42.3 per cent in 2017. With a net capital gain of N4.36 trillion in 2017, investors in Nigerian equities had technically recovered what they had lost in the past three years.

    The turnaround in 2017 represented a fillip for the hard-pressed Nigerian investors. The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the general expectation that political transition and new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion. Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed 2016 at N9.247 trillion as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.

    Most analysts agreed that heightened political risk was a major factor that adversely impacted the equities market in 2018. According to analysts, the intense political activities started earlier than expected and the tenor of the campaigns appeared to worry investors, especially foreign investors that account for more than half of transactions at the stock market. The February 2019 general elections are also expected to shape the direction of the stock market in the months ahead.

    Chief Executive Officer, Sofunix Investment and Communications, Mr. Sola Oni, said the lackluster performance of market in 2018 was predicated on many exogenous factors including illiquidity in the system and massive share dumping by nervous portfolio investors and their Nigerian counterparts who are apprehensive of likely crisis during 2019 general election.

    “The political risk was reinforced by unguarded utterances of the political class. Performance indicators at the Exchange obviously reveal that the market is under pressure. But market fundamentals remain strong as discerning investors are taking advantage of underpriced stocks to beef up portfolios,” Oni, a chartered stockbroker and financial journalist, said.

    National President, Constance Shareholders’ Association of Nigeria, Mikail Shehu, said the crisis that bedeviled Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), which saw the suspension of its Director General and the refusal of the government to address other regulatory governance issues such as the composition of the board of SEC also affected the market.

    “Some other actions taken by other regulators without consideration to the minority shareholders such as the takeover of Skye Bank also affected the morale of the investing public. We hope to see a better outlook in 2019 as soon the general election is over, when it is free and fair, and the new government starts the governance process,” Shehu said.

    Managing Director, Cowry Asset Management Limited, Mr. Johnson Chuwku, also attributed the decline in foreign portfolio inflow to political tension in the country noting that government needs to give assurance that the coming elections will be free and fair, and that the two major political parties will not create a major crisis.

    “The major thing driving portfolio investors is not necessarily that the economy is weak; the economy is still quite strong. The underlying thing is that quoted companies are performing very well, but because portfolio investors are always wary of tensions in emerging markets, they are not willing to risk being caught in crossfire of political parties,” Chukwu said.

    Analysts at Vetiva Capital Management Limited said political risks have become major influence on the Nigerian market as the 2019 elections approach.

    “Looking at the potential outcomes, the incumbent offers stability and policy consistency whilst the primary challenger has positioned himself as an ardent supporter of deregulated markets. Although 2019 economic performance is unlikely to be materially affected by the outcome of the elections, investor confidence can be significantly boosted by a favourable outcome and smooth process,” Vetiva stated.

    Analysts at Cordros Capital stated that the negative performance for the equities market will persist in the short term, amidst growing political concerns ahead 2019 elections, and absence of a positive market trigger.

     

     

  • Stock Exchange demotes Diamond Bank, NEM, Continental Re

    Authorities at the Nigerian Stock Exchange (NSE) have removed Diamond Bank Plc, NEM Insurance Plc and Continental Reinsurance Plc from its high-ranking corporate governance index.

    In a statement yesterday, the NSE stated that the companies would cease to be on its Corporate Governance Index (NSE CGI) with effect from today, January 1, 2019.

    The Exchange indicated that the removal of the duo of Diamond Bank and NEM Insurance was due to observed corporate governance lapses while Continental Reinsurance is being removed due to the company’s quest to voluntarily delist its shares from the Exchange.

    “The Index Governance Committee of the Exchange resolved to remove NEM Insurance from the NSE CG Index following the suspension of the CGRS rating of the company by the Steering Board of the CGRS on Monday, November 19, 2018. Additionally, in view of the recent governance issues with Diamond Bank, the Index Committee has decided to remove the bank from the NSE CG Index,” the Exchange stated.

    The Corporate Governance Rating System (CGRS) is a joint initiative between the NSE and the Convention on Business Integrity (CBi). It was developed to rate the corporate governance and integrity practices of all companies listed on the Exchange. The CGRS was launched on November 3, 2014.

    The NSE CG Index tracks the performance of CGRS-rated companies using their market capitalisation, free float and corporate governance rating scores. The Index is reviewed on a bi-annual basis during which other companies that have become CGRS-rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.

    The NSE CG Index is expected to be an important tool for investors keen on investing in well-governed companies as well as corporates eager to distinguish themselves on the ground of governance.

    The Nation had earlier reported that the NSE had launched an engagement process to review the compliance of Stanbic IBTC Holdings Plc and Diamond Bank Plc to high-level corporate governance standards expected of top-rated quoted companies.

    The review was sequel to the fines imposed on Stanbic IBTC Bank and Diamond Bank by the Central Bank of Nigeria (CBN) for complicity in alleged illegal repatriation of $8.1 billion by MTN Nigeria Communications Limited. Diamond Bank was also subsequently embroiled in boardroom squabble that saw resignation of some non-executive directors.

    To be certified, the CGRS rates quoted companies through three processes including independent verification; self – assessment by the company; certification of director awareness of their fiduciary duties; and a corporate integrity assessment where perceptions of actual company behaviour are sought from internal and external stakeholders.  A score of 70 percent and above for both the company and individual directors is required for certification.

  • Vitafoam Nigeria declares cash dividend, bonus shares

    Vitafoam Nigeria was the toast of the investing public yesterday as the board of the foam-manufacturing company announced that it has recommended payment of cash dividend and distribution of bonus shares to shareholders as returns for the 2018 business year.

    Vitafoam Nigeria’s share price rose by the highest daily allowable change of 10 per cent at the Nigerian Stock Exchange (NSE) to close at N4.40 per share.

    The board of the company has recommended cash dividend of N260.51 million, representing a dividend per share of 25 kobo. Besides, shareholders will receive bonus share of one new ordinary share of 50 kobo each for every five ordinary shares of 50 kobo each held as at the close of business on the qualification date.

    Key extracts of the audited report and accounts for the year ended September 30, 2018 showed that Vitafoam Nigeria recorded impressive growths in sales and profitability. Group turnover rose from N17.69 billion in 2017 to N19.53 billion in 2018. Profit before tax jumped from N18.13 million in 2017 to N793.85 million in 2018. After taxes, the company reversed net loss of N127.69 million recorded in 2017 with a net profit of N601.92 million in 2018. Earnings per share thus improved from a loss of 15 kobo in 2017 to a gain of 57 kobo in 2018.

    Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi, said the performance underscored deliberate efforts by the management to improve cost effectiveness and general corporate efficiency as well as improved access to amenable capital.

    According to him, the company’s performance was boosted by a combination of positive external and internal factors such as improved funding through the Bank of Industry (BoI) intervention and government’s deliberate policy on foreign exchange trading and availability, which helped sourcing of input materials at cheaper rates and also helped planning.

    He added that the company also focused on customer centric approach to drive sales by adopting innovative ideas and market differentiation that allowed it to meet the needs of customers across segments.

  • NSE launches new chat to boost market participation

    The Nigerian Stock Exchange (NSE) has launched an artificial intelligence (AI)-powered chatbot that responds directly and automatically to enquiries through Facebook Messenger. The platform, known as X-Bot, is reputed as the first by any African securities exchange.

    X-Bot is designed to provide market participants, especially retail investors, convenient, faster and real-time access to data and information from the Exchange.

    NSE Chief Executive Officer (NSE) Mr. Oscar Onyema said the introduction of X-Bot was in line with the Exchange’s drive to improve market participation through greater access to market information.

    “We aim for an Exchange that is easily accessible and actively matches investors’ increased thirst for information and detailed disclosure information to make sound investment decisions. With X-Bot, investors in our market can access on-demand market information, news and events on the activities of the Exchange and the various products and instruments that are listed and traded on it,” Onyema said.

    According to him, the NSE has always been at the forefront of innovation, and the launch of the X-Bot marks yet another significant milestone in its continuous adoption of new technologies with a customer-centric focus to make financial services more inclusive and to provide a superior customer experience in the access and use of capital.

    Head, Regulatory Technology (RegTech) NSE) Mr. John Adelana said customer experience is a key priority for NSE, noting that the Exchange is deeply committed to constantly improving customer experience.

    According to him, with the launch of X-Bot, NSE becomes the first African securities exchange to launch a customer interactive machine learning chatbot, which contributes to facilitating and accelerating the process of providing information to market participants.

    “We are particularly excited about the ability of X-Bot to learn through customers interactions and become better at providing our customers with more relevant and timelier solutions overtime,” Adelana said.

  • PZ Cussons grows profit by 55% in H1

    PZ Cussons Nigeria Plc appeared to have started reaping early gains of recent strategic cost-cutting initiatives as the fast moving consumer goods (FMCG) company grew profit by 55.4 per cent in the first half of current business year.

    Key extracts of the six-month report for the period ended November 30, 2018 released at the weekend indicated that profit before tax rose to N1.35 billion by November 2018 as against N868.7 million in the comparable period of 2017. After taxes, net profit also rose from N589.56 million to N1.22 billion. Earnings per share thus doubled from 15 kobo to 31 kobo. Total sales had dropped from N41.12 billion in 2017 to N35.05 billion in 2018. However, cost of sales also improved from N28.8 billion in 2017 to N26.22 billion in 2018.

    The six-month report places PZ Cussons in good stead to improve returns to shareholders. The company had paid N595 million as cash dividend for the 2018 business year, representing a dividend per share of 15 kobo.

    Addressing shareholders recently, Chairman, PZ Cusons Nigeria Plc, Chief Kola Jamodu, the company has started implementing strategic growth initiatives aimed at improving the performance of the company and ensure better returns to shareholders.

    According to him, a number of measures have been taken to guarantee a more sterling performance in the current financial year.

    He outlined that the company had further streamlined and optimized its products to improve on focus on key brands and consolidation of existing infrastructure and facilities towards improving supply chain efficiencies.

    He added that the company has also optimized its operating model to reduce overheads and speed to market for new products.

    According to him, while the competition in the FCMG sector remains strong, PZ Cussons Nigeria’s balance sheet remains strong with total assets of N88.1 billion as the company continues to maintain a strong cash position that gives it the flexibility and agility in financing its operations.

  • New investors acquire major stakes in NEM Insurance

    Three deals were at the weekend struck for the transfer of about 10.5 per cent equity stake in NEM Insurance Plc, bringing major changes in the equities of the insurance company during the week to 20.13 per cent.

    A total of 553.9 million ordinary shares of NEM were swapped in three off-market deals at N3.70 per share at the weekend. The deals were negotiated cross deals between the seller and the buyer. The weekend’s deals represented 10.49 per cent of the paid up share capital of the insurance company.

    In other major transactions, a total of 508.7 million ordinary shares of NEM had been traded earlier on Monday December 24, 2018, representing 9.64 per cent of the company’s issued shares.

    As off-market, negotiated cross deals, it means that the deals were not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the Nigerian Stock Exchange (NSE).

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    While the details of the latest transactions were sketchy, a new strategic investor, Eaton Acquisitions Limited, had indicated it was seeking to acquire 10 per cent equity stake in NEM Insurance Plc, a major stake that will enable the new investor to take up board position at the insurance firm.

    Eaton Acquisitions Limited had confirmed that it had acquired up to nine per cent equity stake in NEM Insurance, one percentage point below its target.

    Managing Director, Eaton Acquisitions Limited, Mr. Olaleye Adeyinka, said the company increased its stakes in NEM Insurance because it offers strategic opportunities and growth.

    He said the investment firm intends to acquire more shares until it meets the mandate of its board to acquire 10 per cent of the company’s shares.

    “There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad sharing holding base that engenders good corporate governance, and a network of current and potential shareholders for enhanced business development,” Adeyinka said.

    He noted that though the investment firm cannot say much about the strategic vision of NEM Insurance yet as it is in the purview of management and the board, but it has unalloyed confidence in both organs of the company’s governance.

    Adeyinka expressed confidence in the ability of current NEM’s leadership, noting that the investment firm is desirous of gaining board representation in view of its dominant shareholding stake in the company.

  • Notore grosses N26.8b as interest expense depresses profit

    Notore Chemical Industries Plc witnessed decline in sales and profitability in 2018 as maintenance programme on its plant and high interest expense combined to depress the top-line and bottom-line of the agro-allied company.

    Key extracts of the audited report and accounts of Notore for the year ended September 30, 2018 showed that total turnover dropped to N26.82 billion in 2018 as against N35.89 billion in 2017. The company attributed the top-line performance to downtime caused by a maintenance programme on its plant. Operating profit rose marginally by four per cent from N6.94 billion in 2017 to N7.22 billion in 2018.

    With net finance cost of N10.85 billion, loss before tax  increased to N3.63 billion in 2018 as against N2.15 billion in 2017. With tax credit dropping from N10.8 billion in 2017 to N1.62 billion in 2018, the company ended with net loss after tax of N2.01 billion in 2018 as against net profit of N8.65 billion in 2017. Loss per share stood at 1.25 kobo in 2018 as against earnings per share of 5.37 kobo in 2017.

    The management of the company, which was listed on the Nigerian Stock Exchange (NSE) in August 2018, said the outlook for the company remains positive citing ongoing turnaround programme and investment pipeline that should quadruple the company’s capacity in the next five years.

    According to the company, it recently installed a 2,000 metric tonnes per day capacity NPK Blending Plant at its facilities, which will increase production figures in 2019 while the scheduled Turn-around Maintenance (TAM) programme for its Urea Plant, which is scheduled for the final quarter of 2019 business year is expected to build reliability into the plant in order to achieve nameplate capacity of 1,500 metric tonnes per day consistently for 335 production days or 500,000 metric tonnes per annum.

    The company noted that the outlook for the fertiliser market in Nigeria and other West African countries is reassuring for a sustainable growth.

    “The fertiliser market in Nigeria during the 2018 financial year was very robust as there was considerable demand for urea and other compound fertilisers from the farming belts in Nigeria. From our perspective, the domestic fertiliser market is yet to reach its full potential. Furthermore, the demand for urea and compound fertilisers, such as NPK, from the West African markets is also quite significant. Notore sold all the urea it produced, approximately 258,519 metric tonnes, in 2018 financial year into the domestic fertilizer market,” Notore stated.

    The company outlined key achievements in the immediate past business year to include approval for $37 million funding from Africa Export Import Bank to execute its TAM, refinancing of N46.73billion of short term loans into long term loans with a seven-year tenor and one-year moratorium on principal repayment as well as the award of a Free Zone Developer Status by the Onne Oil & Gas Free Zones Authority to operate and expand the Oil & Gas Free Zone in Onne.

    The company also during the year completed 95 per cent of the dredging activities of its jetty to a draft of 10.5 meters to enable vessels with approximately 35,000 metric tonnes capacity to berth at the jetty compared to the previous maximum size of 15,000 metric tonnes capacity vessels.

    “Notore’s short and medium term plans entail achieving the 500,000 metric tonnes per annum nameplate capacity and the construction of a fertiliser and a petrochemical plant with joint production capacity of over 2,000,000 metric tonnes per annum respectively by 2023,” Notore stated.

    Notore, formerly known as O-Secul Fertilizer Company Limited, was established in 2005 to acquire the core assets of the National Fertilizser Company of Nigeria (NAFCON). Notore had on August 2, 2018 listed its entire paid up share capital on the NSE, opening up the agro-allied company to the general investing public 13 years after it was privatised by the Federal Government.

    Notore, a vertically integrated agro-allied, chemical and power group based in Onne, Rivers State, has six subsidiaries including Notore Supply & Trading Mauritius Limited, Notore Power Limited, Notore Seeds Limited, Notore Foods Limited and Notore Industrial City Limited. With its broad business portfolio, Notore appeared to be in a position to offer investors long-term value. The company is a leading producer of fertiliser products traded locally and exported to West Africa, Southern Africa and Europe. Given the efforts of the federal government to diversify the economy with much focus on agriculture, companies operating in the agro-allied space have huge headroom for growth.

    Notore is a licensed independent power producer, which generates electricity for use in its fertiliser plant and residential estate, with excess capacity available for sale to nearby off-takers. The power plant has a total capacity of 50 megawatts (MW) with own use requirements of between 8 MW to 13 MW.

  • Companies to show compliance with sustainability principles

    Quoted companies on the Nigerian Stock Exchange (NSE) will now be required to show compliance with sustainability principles as part of efforts by the Exchange to champion sustainable capital market practices in Africa.

    Under the Sustainability Disclosure Guidelines of the NSE recently approved by the Securities Exchange Commission (SEC), companies are expected to show their compliance with Environmental, Social and Governance (ESG) principles.

    The guidelines primarily provide the value proposition for sustainability in the Nigerian context. It also articulates a step by step approach to integrating sustainability into organisations, indicators that should be considered when providing annual disclosure to the Exchange, and timelines for such disclosures.

    The guidelines will become effective on January 1, 2019 and they will be mandatory for companies listed on the premium board of the Exchange.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the Exchange was supporting the global agenda of green and sustainable finance, which is so critical for Africa.

    According to him, as the first Exchange to list a sovereign green bond in Africa, the issuance of the sustainability guidelines is to further enable investors ascertain their exposure to ESG risks while providing quoted companies a platform to disclose them along common themes for comparability.

    “We encourage peer exchanges on the continent to continue to enhance information disclosure in their markets as this will help build trust,” Onyema.

    Head, Corporate Communications, Nigerian Stock Exchange (NSE), Mr. Olumide Orojimi, noted that with continued global participation in the Nigerian capital market, a shared framework of ESG principles with multi-stakeholder approach and metrics is imperative.

    He outlined that the guidelines set out recommendations for good practice in 13 thematic areas under four core principles in ESG reporting adding that with the launch of the guidelines, investors can look forward to a consistent approach to ESG reporting from quoted companies on the NSE.

    “As a member of the United Nations Sustainable Stock Exchanges (SSE) initiative, and the World Federation of Exchanges (WFE), NSE is committed to providing its listed companies with guidance on sustainability reporting, and has taken steps to demonstrate its commitment through a number of pre-implementation activities,” Orojimi said.

     

  • Equities in Santa rally with N436b gain

    Nigerian equities staged a major rally yesterday with a net capital gain of N436 billion in five-hour trading session that preceded the Christmas holiday.

    With more than seven gainers for every loser, the market situation was overtly bullish as investors sought to close the last deals before the two-day public holiday declared by the Federal Government.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average gain of 3.88 per cent, equivalent to net capital gain of N436 billion. The rally moderated the negative average year-to-date return to -16.41 per cent.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the NSE, crossed another threshold to 31,967.01 points as against its opening index of 30,773.64 points. Aggregate market value of all quoted equities rose from its opening value of N11.241 trillion to close at N11.677 trillion.

    The positive overall market situation was driven by widespread gains across the sectors and stocks’ groups. All sectoral indices closed on the upside. The NSE Oil & Gas Index led with a gain of 5.7 per cent. The NSE Consumer Goods Index rose by 5.5 per cent. The NSE Industrial Goods Index appreciated by 2.6 per cent. The NSE Banking Index rose by 1.4 per cent while the NSE Insurance Index appreciated by 1.0 per cent.

    With 36 gainers to five losers, the momentum of activities also quickened as turnover volume and value rose by 269.5 per cent and 41.7 per cent respectively. Total turnover stood at 715.04 million shares valued at N5.19 billion in 2,791 deals.

    Nestle Nigeria-NSE’s highest-priced stock, led the rally with a gain of N147 to close at N1,617.10. Seplat Petroleum Development Company followed with a gain of N58.40 to close at N642.90 while Dangote Cement, NSE’s most capitalised stock, chalked up N7 to close at N194 per share.

    On the downside, Lafarge Africa led the losers with a drop of 10 kobo to close at N12.50. United Capital followed with a drop of 6.0 kobo to close at N2.82. Guinea Insurance declined by 2.0 kobo to close at 23 kobo while Tantalizers and John Holt dropped by one kobo each to close at 20 kobo and 44 kobo respectively.

    The most active stocks were NEM Insurance, with a turnover of 508.7 million shares; Medview Airlines, 54.8 million shares and Guaranty Trust Bank, with a turnover of 26.0 million shares.

    “We expect market performance to be positive in subsequent sessions till year end largely driven by portfolio re-balancing,” Afrinvest Securities stated.