Nigerian Local Bourse Opens Positive as Investors Gain N9.6Bn

Nigerian Local Bourse Opens Positive as Investors Gain N9.6Bn

The Nigerian local bourse opens the week positive as investors gain N9.6 billion to consolidate the last week stocks appreciation.

On Monday, equity sentiment got off to a positive start, following investors’ interest across major counters with price appreciation in NIGERIAN BREWERIES (+1.6%), WAPCO (+1.1%) and TRANSCORP (+10.0%).

The benchmark index rose by 4 basis points (bps) to 39,318.52 points, representing the seventh consecutive positive returns as year to date loss moderated to 2.36%.

At the close of trading session, Nigerian Exchange (NGX) market capitalisation printed at N20.577 trillion amidst improved investors’ sentiment.

“While the equity market showed a lot of optimism in recent sessions, which we imagined was solely driven by the race to meet the 2020 dividend qualification date, we see strong arguments for these fortunes to reverse quickly”, analysts at Chapel Hill Denham said.

They said “For one, yield attractiveness in the fixed income market will continue to hinder progress in the equities market, in our view”.

Beyond that, analysts think the still challenged foreign exchange (FX) market will continue to keep foreign investors apprehensive towards naira equities, as the absence of pricing flexibility by the CBN continues.

Nonetheless, analysts guide that Nigeria’s valuation remains attractive relative to peer countries both on forward price earnings ratio and dividend yield perspective.

It was however noted that this development could trigger an upward repricing of equity instruments in the medium term.

On today’s price list, LINKASSURE (+10.00% to N0.88), TRANSCORP (+10.00% to N0.88%), and CORNERST (+9.62% to N0.57) were today’s top gaining stocks.

On the flip side, CONOIL (-9.33% to N17.00), IKEJAHOTEL (-9.09% to N1.00), and SOVRENINS (-8.00% to N0.23) were today’s top losers.

Performance across Chapel Hill Denham’s coverage universe was largely mixed but with a bearish tilt with 3 of 5 coverage indices closed in the red terrain.

The NSE oil & gas, NSE consumer goods, and NSE banking indices closed negative, declining by 34bps, 1bp, and 7bps, respectively.

This was offset by the gains recorded across the NSE Insurance and NSE industrial goods indices, both of which rose by 222bps and 7bps, respectively.

The market’s activity was broadly bearish, with the total volume declining 28.18% to 200 million, valued at N1.141 billion.

Today’s most traded stocks by volume were TRANSCORP (92.54 million units), FBNH (23.89 million units), and MANSARD (20.05 million units).

On the other hand, the top traded stocks by value were GUARANTY (N0.514 billion), ZENITHBANK (N0.315 billion), and FBNH (N0.177 billion).

Elsewhere, the Chapel Hill Denham’s Paramount Equity Fund (PEF) closed flat, while the Women Investment Fund (WIF) rose by 15bps.

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Nigerian Local Bourse Opens Positive as Investors Gain N9.6Bn