Nigerian equities reopened yesterday on a tit-for-tat trading as bargain hunters and profit-takers held the equities market to almost a balance. With an advancer for every decliner, the inclusion of the two leading banks-Guaranty Trust Bank Plc (GTB) and Zenith Bank International Plc among the decliners tilted the market to a marginal net capital depreciation of N6 billion.
The All Share Index (ASI)- the main index that tracks share prices, dropped by 0.05 per cent to close at 29,196.87 points as against its opening index of 29,212.00 points. Aggregate market capitalisation of quoted equities dropped by N6 billion to close at N10.973 trillion as against its opening value of N10.979 trillion. Average year-to-date return inched up to -7.11 per cent.
With 14 gainers and losers each, sectoral indices showed mixed performance with selloffs in banking sector counterbalanced by gains in the insurance sector. The NSE Banking Index dropped by 0.68 per cent. The NSE Industrial Goods Index dipped by 0.51 per cent while the NSE Oil & Gas Index declined by 0.15 per cent. On the positive side, the NSE Insurance Index appreciated by 2.35 per cent while the NSE Consumer Goods Index rose by 0.10 per cent.
Beta Glass and Dangote Cement led the gainers with a gain of N1 each to close at N57 and N181 respectively. Dangote Flour Mills rose by 65 kobo to close at N17.75. NEM appreciated by 22 kobo to close at N2.43 while United Capital added 6.0 kobo to close at N2.58 per share.
On the losers’ list, 11 Plc, formerly Mobil Oil Nigeria, led the decliners with a drop of N2 to close at N175. Cement Company of Northern Nigeria followed with a drop of 55 kobo to close at N15.30. GTB lost 45 kobo to close at N33. Ikeja Hotels and UACN Property Development Company dropped by 15 kobo each to close at N1.60 and N1.53 respectively while Zenith Bank and Union Bank of Nigeria lost 10 kobo each to close at N20.90 and N7 respectively.
Total volume traded went down by 23.93 per cent to 271.08 million shares valued at N1.49 billion in 3,814 deals. Japaul Oil & Maritimes Services was the most active stock with 58.61 million shares valued at N23.4 million. United Bank for Africa (UBA) followed with 36.997 million shares worth N244.78 million while Courteville traded 30.68 million shares valued at N7.36 million.
“In our view, the sustained sell-offs in the Nigerian equities market is overdone compared to peer markets. This provides a basis for the ASI to recover in the absence of further downside risks. Beyond the obvious, we believe that the blend of positive macroeconomic fundamentals and compelling valuations supports our view of a near term recovery,” Cordros Capital stated.