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Nigerian stocks rebounds with N18b gain as analysts see stable macroeconomic fundamentals spur economic recovery

After five days of consecutive negative session, Nigerian equities witnessed marginal recovery yesterday as bargain-hunters increased buy orders for value stocks. While there were more decliners than advancers, gains by large and mid-cap stocks roused the market to its first gain in six days.

Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average gain of 0.15 per cent, equivalent to net capital gain of N18 billion. Average year-to-date return, though still negative, improved to -0.22 per cent.

The All Share Index (ASI)- the common value-based index that tracks share prices at the Exchange, inched up to 31,360.28 points as against its opening index of 31,313.36 points. Aggregate market value of all quoted equities rose from its opening value of N11.677 trillion to close at N11.695 trillion.

Sectoral indices showed mixed performance across the sectors. The NSE Banking Index rose by 0.04 per cent. The NSE Consumer Goods Index appreciated by 1.60 per cent while the NSE Oil and Gas Index closed flat. However, the NSE Industrial Goods Index declined by 0.35 per cent while the NSE Insurance Index dipped by 0.02 per cent.

There were 13 advancers against 18 decliners. Nestle Nigeria, NSE’s highest-priced stock, led the rally with a gain of N69.90 to close at N1,549.90. CAP followed with a gain of N3.40 to close at N37.40. Okomu Oil Palm added N1 to close at N80. Eterna rose by 40 kobo to close at N4.80. Sterling Bank chalked up 21 kobo to close at N2.36 while Guaranty Trust Bank added 20 kobo to close at N35.70 per share.

On the negative side, Guinness Nigeria led the losers with a loss of N3.15 to close at N64. Dangote Cement lost N2 to close at N192. Dangote Flour Mills declined by 50 kobo to close at N9.50. Africa Prudential dropped by 37 kobo to close at N4.55 while UAC of Nigeria lost 20 kobo to close at N7.80.

“Today’s rebound in the domestic equities market was in line with our expectations, and in our view, sustained bargain hunting will further buoy market performance over the near term,” Afrinvest Securities stated.

Total turnover stood at 377.49 million shares valued at N2.26 billion in 3,273 deals. Diamond Bank led the activities chart with a turnover of 113.6 million shares worth N283.36 million. Chams followed with 72.15 million shares worth N14.43 million while FBN Holdings placed third with 71.53 million shares worth N586.23 million.

Analysts at Cordros Capital remained cautious, urging investors “to trade cautiously in the short term” while reiterating optimism that “stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term”.

Godwin Okaforhttps://naija247news.com
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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