By Goddy Egene
The stock market rebounded yesterday following barging hunting in the shares of Dangote Cement Plc, Nestle Nigeria Plc and Nigerian Breweries Plc.
Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.6 per cent to close at 38,931.25.
Market capitalisation added N127.9 billion to be at N20.4 trillion. The market has been experiencing pullbacks as investors adopted cautions trading in reaction to mixed corporate earnings and gradual upticks in fixed income yields.
Analysts Cordros Securities had on Monday lowered their projected return for the equities market as the fixed income securities market yields began. The analysts had estimated their base case for the equities to be 12.8 per cent. But they explained that following the earlier than expected reversal in fixed income yields, their views on the timing of some of their key factors to watch had changed.
“Consequently, we revise our base case estimate for market return in 2021 downwards to 8.8 per cent (previously: +12.8 per cent). Over the rest of first half of 2021 (H1-21), we believe the interplay between corporate actions and yield elevation in the fixed income (FI) market will continue to shape market performance. As a result, we expect a choppy market, albeit with a bearish bias, as investors remain increasingly reluctant to leave gains in the market,” they said.
And after declining on Tuesday, the market returned to the positive territory yesterday, buoyed by gains posted by bellwethers such as Dangote Cement Plc, Nestle Nigeria Plc and Nigerian Breweries Plc.
In all, 23 stocks appreciated compared same number of stocks that depreciated. Morison Industries Plc led the price gainers with 9.7 per cent, trailed by Champion Breweries Plc with 8.9 per cent. Neimeth International Pharmaceuticals Plc chalked up 8.8 per cent, just as Mutual Benefits Assurance Plc garnered 7.6 per cent.
NAHCO Plc and Wema Bank Plc went up by6.6 per cent and 6.5 per cent respectively, just as May & Baker Nigeria Plc and Oando Plc gained 6.5 per cent and 5.6 per cent in that order.
Conversely, Consolidated Hallmark Insurance Plc led the price losers with 10 per cent, trailed by Eterna Plc with 9.9 per cent. Conoil Plc and Northern Nigerian Flour Mills Plc shed 9.7 per cent and 9.6 per cent respectively.
Meanwhile, trading activity waned as volume and value declined by 34.1 per cent and 31 per cent respectively to 323.2 million shares and N4.6 billion. The most traded stocks by volume were United Bank for Africa Plc (74.8 million shares), FBN Holdings Plc (65.4 million shares) and GTBank (34.3 million shares) while GTBank (N1.1 billion), Nestle Nigeria Plc (N635.6 million) and UBA (N523.4 million) led by value.