The Nigerian equities market closed on a positive note for the second day yesterday as the Nigerian Stock Exchange All-Share Index (NSE ASI) rose 0.09 per cent to close at 25,265.08. The market had rebounded the previous day to halt five days losing streak following the activities of bargain hunters. The positive run was sustained yesterday with the NSE ASI rising by 0.09 per cent to be at 25,265.08, while market capitalisation added N2.2 billion to close at N8.7 trillion.
However, analysts at Cordros Capital Limited said the marginal gains of the past two days , despite the huge sell-off experienced last month, do not point to sustainable recovery.
According to analysts at Meristem Securities Limited, performance of the market was driven mostly by bargain hunting on selected stocks and buy sentiments towards the oil and gas stocks, following OPEC’s decision to cut crude oil output by 1.2mbpd on Monday.
“We expect this trend to persist for the rest of the week,” they said.
In line with the renewed interest in oil and gas stocks, Mobil Oil led the price gainers for the fourth consecutive day, rising by 10.2 per cent. Similarly, Forte Oil Plc added 10.2 per cent, just as Oando Plc garnered 4.8 per cent. Outside the oil and gas sector, Portland Paints chalked up 9.2 per cent, while Okomu Oil Palm added 5.0 per cent.
In terms of performance across the sectors, two sectors appreciated, while three declined. Obviously, the NSE Oil & Gas Index led with 3.0 per cent driven by sustained rally in Mobil Oil Nigeria, Oando Plc as well as bargain hunting in Forte Oil Plc. The NSE Banking Index followed, advancing 0.3 per cent on account of renewed buying interest in Guaranty Trust Bank Plc (+0.7 per cent), Wema Bank Plc(+1.9 per cent) and United Bank for Africa Plc(+0.2 per cent).
Analysts at FSDH Research recently said many banking stocks are trading at huge discounts compared to their peers in other jurisdictions.
Conversely, the NSE Consumer Goods Index fell 0.5 per cent on the back of decline in Nigerian Breweries Plc (-1.4 per cent) while the NSE Insurance Index slid 0.1 per cent as a result of profit-taking in WAPIC Insurance Plc (-2.8 per cent). Similarly, the NSE Industrial Goods Index shed 0.04 per cent.