NSE Gains ₦106.7bn as Policy Rate Cut Raises Sentiment
Price appreciation in some highly capitalised stock raised the performance of the Nigerian Stock Exchange Thursday amidst policy rate cut which analysts say may rechanneled investable funds into the equities market.
Market data shows that NSE records 10% price appreciation in Nigerian Breweries stock, Dangote Cement surged 0.9% and Guaranty Trust Bank gained 2.0%, buoyed positive return in the All-Share Index.
The index climbed 79 basis points (bps) to 25,987.14 points at the close of trading session.
Accordingly, market capitalisation rose ₦106.7 billion to ₦13.6 trillion while year to date loss moderated to -3.2%.
Activity level declined as volume and value traded dipped 13.3% and 38.3% respectively to 359.3 million units and ₦3.9 billion.
The most traded stocks by volume were Sterling Bank which transacted 71.9 million units, Guaranty 51.7 million units and Zenith 44.5 million units.
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Topping the value chart, Guaranty traded ₦1.3 billion, Zenith ₦759.1 million and Flour Mills of Nigeria ₦588.3 million.
Afrinvest said performance across sector was however bullish as 4 of 6 indices under its analysts coverage appreciated.
The Consumer Goods index led the gainers, up 2.1% following price accretion in Nigerian Breweries (+10.0%) and Dangote Sugar (+2.9%).
Similarly, the Banking and Industrial Goods indices advanced 1.6% and 0.9% respectively due to buying interest in Guaranty (+2.0%), Access (+4.0%) and WAPCO (+6.8%).
Also, gains in MTNN (+0.1%) drove the AFR-ICT index 4bps higher.
Conversely, the Insurance and Oil & Gas indices lowered 0.7% and 0.2% respectively due to losses in Wapic (-7.7%) and Ardova (-9.7%).
Also, investor sentiment as measured by market breadth strengthened to 3.6x from the 1.5x recorded previously as 25 stocks gained against the 7 that lost.
Shares of Nigerian Breweries surged 10.0%, UNIONDAC spiked 8.0% and Royal Exchange was lifted +7.4% to top gainers chart.
The laggards were Ardova with share price drop of 9.6%, DAAR Communication knocked off 9.1% and Red Star Express lost 7.7%.
“We expect the market to close the week in the green as investors continue to buy low-priced stocks”, Afrinvest stated.
NSE Gains ₦106.7bn as Policy Rate Cut Raises Sentiment
