Bargain Hunting in Growth, Value Stocks Drive NGX Higher

Bargain Hunting in Growth, Value Stocks Drive NGX Higher

Due to bargain hunting in growth, and value stocks, the Nigerian Exchange (NGX) rebounded by more than N18 billion on Thursday. The equities market investors renewed buying interest in Dangote Sugar, International Breweries and other listed companies’ shares.

The mild capital appreciation of all the listed stocks was propelled primarily by renewed interest in Consumer Goods names – DANGSUGAR (+1.82%), INTBREW (+6.67%) and NASCON (+5.69%).

MarketForces Africa reported that the domestic bourse experienced a midweek downturn resulting from weak investors’ sentiment that triggered selling rallies. According to data from the local bourse, market indicators grew by 0.13%, reversing the previous day’s negative price movements on bellwether stocks like MTN Nigeria.

Data from the NGX showed that year-to-date return advanced to 29.89%, a relatively weaker level after crossing 30% levels – still above an annual inflation rate of 25.8%. Stockbrokers noted that the market index or NGX All-Share Index increased by 87.91 basis points, which represents an increase of 0.13% to close at 66,570.19 points.

In their separate reports, stock traders reported that market activities were up, as the total volume and total value traded increased by +54.27% and +2.95% respectively. Atlass Portfolios Limited stated that approximately 1,104.38 million units valued at ₦4,733.05 million were transacted in 6,959 deals.

OANDO was the most traded stock in terms of volume, accounting for 21.03% of the total volume of trades. The energy company was followed by UNIVINSURE (13.21%), FIDELITYBK (9.83%), STERLINGNG (6.84%), and ELLAHLAKES (5.32%) to complete the top 5 on the volume chart, Atlass Portfolios Limited said in its market report.

With the ongoing rally, OANDO was also the most traded stock in value terms, with 20.59% of the total value of trades on the exchange.

WEMABANK topped the advancers’ chart for today with a price appreciation of 9.93 per cent, trailed by THOMASWY (9.74%), REGALINS (+8.82%), DAARCOMM (+8.70%), ROYALEX (+8.70%), and nineteen others.

Market data showed that nineteen stocks depreciated despite renewed buying interest in the local bourse. CHAMPION was the top loser, with a price depreciation of 9.87%. ABCTRANS market price went down by 9.72%.

UPDC dipped by 8.57% today, followed by a 6.98% decline in the market price of OMATEK. FLOURMILL slipped by 1.52% due to profit-takings in the consumer goods stocks.  UCAP also lost 1.16% of its market price.

As a result of the trading pattern witnessed, the market breadth closed positive, recording 24 gainers and 19 losers, though sectorial performance closed positive. Naira Devaluation Deepens Economic Crisis in Nigeria

Three of the five major market sectors closed in the green, according to trading results from the Nigerian bourse. The Banking index grew by 0.44% followed by the Consumer goods sector which popped up by 0.39%. The Industrial sector rose by 0.03%.

On the other side, the Insurance sector was down by -0.06%, while the Oil & Gas closed unchanged. Overall, the equities market capitalisation increased by N18.2 billion to close at ₦36.53 trillion, stockbroking firms said in their daily reports. 

Corporate Announcements

Today, GUINNESS notified the NGX of its intention to halt its distribution of Diageo international premium spirits products, which include Johnie Walker, Singleton, and Baileys, among others, under its 2016 Sale & Distribution Agreement with Diageo Plc.

According to management, this move aligns with the company’s long-term growth strategy and Diageo’s decision to establish a new, wholly-owned spirits-focused business to control the importation and distribution of its international premium spirits portfolio in West and Central Africa.

The market welcomes the listing by the introduction of 853,694,759 units of Chapel Hill Denham Management Limited’s Nigerian Infrastructure Debt Fund under the ₦200 billion Issuance Program on the Main Board of the Exchange. #Bargain Hunting in Growth, Value Stocks Drive NGX Higher