The Nigerian equities market began the week on a positive note monday as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rising marginally by 0.01 per cent close at 25,743.03. Although the marginal gain may mean that profit taking is imminent following a recovery witnessed in the prices of stocks since last Wednesday.
The market had rebounded last Wednesday leading to a week-on-week appreciation of 1.61 per cent after six weeks of decline.
Market analysts at Cordros Capital Limited had last week explained that the rebound investors cherry-picking fairly priced, dividend paying stocks ahead of year end and the announcement of OPEC’s output freeze deal with Nigeria among countries exempted.”
When the trading started on Monday, the positive trend was sustained with a marginal growth, bringing the year-to-date decline of the index to 10.12 per cent. However, the positive performance was sustained on the back of continuous rally in oil and gas stocks, which offset sell-off in industry goods and banking stocks.
Commenting on the market performance, analysts at Meristem Securities Limited said trading activities in the Nigerian bourse mirrored the activities in the previous week, as they saw investors’ continued rally on the Ooil & gas stocks.
“We foresee this trend may continue, while we do not rule out the possibility of profit taking on some oil & gas counters,” they said.
However, analysts at analysts at Afrinvest said: “The weak sentiment amidst flattish performance of the broader index highlights investors’ apathy for equities despite attractive valuation. We expect this to continue until the “Santa rally” begins to usher in a new year as investment managers reposition portfolios.”
A total of 15 stocks fell compared to others that declined.
Forte Oil Plc and Total Nigeria Plc appreciated by 10.2 per cent apiece, while Oando Plc went up by 10.2 per cent. Transcorp Plc chalked up 7.0 per cent, just as Portland Paints and Products Plc, Dangote Sugar Refinery Plc and CAP Plc gained 4.9 per cent, 4.8 per cent and 3.0 per cent respectively.
Conversely,Guinness Nigeria Plc led the price losers with 9.7 per cent, trailed by Vitafoam Nigeria Plc(5.0 per cent); Redstar Express Plc (4.9 per cent);AXA Mansard Insurance Plc (4.6 per cent); Neimeth Pharmaceuticals Plc(4.5 per cent); Lafarge Africa Plc(4.2 per cent), Flour Mills of Nigeria Plc (3.6 per cent) and Wema Bank Plc (3.5 per cent).