Equities Market Rebounds amidst Renew Bullish Activity
The Nigerian Stock Exchange rebounds amidst renewed bullish activities.
This is coming just as the Bureau of Statistic data shows inflation rate increase to 12.40% in May.
The benchmark index appreciated 17 basis points to close at 24,972.82 points as investors cherry-picked bellwethers.
Blue chips stocks that drove bargain hunting include NESTLE which gained +10.0%, ACCESS +1.5% and FLOURMILL +4.4%.
As a result, market capitalisation increased by ₦21.9 billion to settle at ₦13 trillion. Meanwhile, year to date loss eased to -7.0%.
However, activity level improved as volume and value traded rose 32.7% and 70.8% respectively to 266 million units and ₦2.7 billion.
The most active stocks by volume were GUARANTY which traded 43.7 million units, UACN 41.2 million units and FCMB 22.5 million units.
On the value chart, GUARANTY led with ₦1 billion, UACN ₦288.7 million and NESTLE traded stocks worth ₦236.5 million.
Bearish Sector Performance:
Afrinvest however said performance across sectors remained unimpressive.
Only the Consumer Goods index (+4.2%) appreciated as a result of gains in NESTLE (+10.0%) and FLOURMILL (+4.4%).
The Oil & Gas (-4.4%) and Insurance (-3.0%) indices led the laggards due to losses in SEPLAT (-9.4%), MANSARD (-9.0%), AIICO (-8.2%).
Meanwhile, the Banking index (-0.8%) also lost, following price declines in GUARANTY (-2.5%) and UBA (-0.8%).
Both the AFR-ICT and the Industrial Goods indices closed flat.
Investor Sentiment Wanes:
Investor sentiment as measured by market breadth declined to 0.4x from the 0.5x recorded in the previous session as 8 stocks advanced against 21 decliners.
The best performing stocks were NESTLE (+10.0%), CADBURY (+7.4%) and FLOURMILL (+6.9%).
NEIMETH top the losers chart as price dropped 9.9%, NPRMCRFBK fell 9.5% and MANSARD 9.4%.
“We are not optimistic of a rebound in market activities this week as investor sentiment remains weak”, Afrinvest stated.
Equities Market Rebounds amidst Renew Bullish Activity
