NSE Closed in Green Despite Sell-offs in Tier-1 Banks Stocks
The Nigerian Stock Exchange closed in green Wednesday despite sell-offs in Tier-1 banking stocks and social-political unrest.
Nigeria’s equity investors shrugged off the seemingly brewing socio-political landscape and bounced back from the sell-off witnessed in the prior session.
Once again, analysts at Chapel Hill Denham said the troika impact of the buoyant system liquidity, low yield environments, and attractive equities valuation exerted a greater influence on sentiments.
Precisely, appetite for risk assets rebounded strongly.
Also, the NSE All-Share Index closing higher by 40bps to 28,563.87, mostly driven by investors’ interest in MTNN (+1.45%), STANBIC (+2.33%), and UBA (+3.03%).
Improved performance came despite the sell-offs on most tier-1 banking stocks, says analysts at Chapel Hill Denham.
Against that backdrop, the year to date return and market capitalisation grew strongly to 6.41% and N14.930 trillion, respectively.
The combination of UAC of Nigeria Plc (+8.33% to N7.15), Union Diagnostic & Clinical Services Plc (+8.00% to N0.27), and FCMB Group Plc (+7.96% to N2.44) were today’s top gaining stocks.
On the flip side, WAPIC Insurance Plc (-9.09% to N0.40), UACN Property Development Co Plc (-3.66% to N0.79), and GlaxoSmithKline Consumer Nigeria Plc (-3.75% to N5.40) were today’s top losers.
As with the previous two sessions, performance across Chapel Hill Denham’s coverage universe remain broadly negative, with only 1 of 5 of our coverage indices closing in the green.
Specifically, the NSE industrial goods index grew slightly by 15bps.
Nonetheless, the preceding was completely wiped off by losses across the NSE insurance, NSE oil & gas, NSE banking, and NSE consumer goods indices, all of which dipped by 93bps, 7bps, 3ps, and 6bps, respectively.
This was driven mostly by WAPIC Insurance (-9.09%), OANDO (-0.87%), Zenith Bank (-0.72%), and International Breweries (-2.95%).
For the third straight sessions, the market’s activity remains broadly weak, with volume traded declining by 4.67% to 311mn units, valued at N4.691bn.
Most traded stocks by volume were Guaranty Trust Bank Plc (77.84mn units), Access Bank Plc (57.66mn units), and Zenith Bank Plc (39.58mn units).
On the other hand, the top traded stocks by value are Guaranty Trust Bank Plc (2.336bn), Zenith Bank Plc (N0.814bn), Access Bank Plc (N0.443bn).
Elsewhere, the Chapel Hill Denham’s Paramount Equity Fund (PEF) and the Women In-vestment Fund (WIF) both dipped by 52bps and 88bps, respectively.
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NSE Closed in Green Despite Sell-offs in Tier-1 Banks Stocks
