NSE Opens Positive despite Sell-offs in UBA Shares

NSE Opens Positive despite Sell-offs in UBA Shares

The Nigerian Stock Exchange (NSE) opens the week positive despite sell-off in United Bank for Africa’s (UBA) stock.

It was noted that price appreciation in BUACEMENT (+5.1%), STANBIC (+10.0%) and INTBREW (+5.9%) buoyed market performance.

Consequently, the benchmark index rose 89 basis points (bps) to 38,722.87 points, year to date loss improved to -3.8% and market capitalisation increased ₦178.1bn to ₦20.3 trillion.

Trading activity declined as volume and value fell 4.6% and 24.0% respectively to 277.2m units and ₦3.1 billion.

The most traded stocks by volume were UBN (79.9m units), GUARANTY (36.1m units) and FBNH (33.3m units).

Meanwhile GUARANTY (₦1.1 billion), ZENITH (₦562.5 million) and UBN (₦423.4 million) led by value.

Bullish Sector Performance

Afrinvest said performance across sectors that under its coverage was bullish as 4 indicators gained.

The Industrial Goods index led the gainers, up 2.1% following price uptick in BUACEMENT (+5.1%).

Also, the Insurance and Consumer Goods indices appreciated 0.4% and 0.3% respectively on the back of gains in MANSARD (+1.0%), LASACO (+3.3%), INTBREW (+5.9%) and VITAFOAM (+3.9%).

Conversely, analysts said sell-offs in UBA (-3.5%) pushed the Banking index lower by 1bp as the AFR-ICT index closed flat.

Following decision to cut dividend payment to equities investors by 56%, investors have been dumping the Pan-African bank stock.

Investor Sentiment Strengthens

Investor sentiment, as measured by market breadth strengthened to 3.3x from the 2.3x recorded previously as 26 stocks gained against 8 decliners.

JBERGER (+10.0%), STANBIC (+10.0%) and UACN (+6.7%) were the top gainers while CHAMPION (-8.2%), JAIZBANK (-4.5%) and JAPAULGOLD (-4.1%) were the top decliners.

“We expect a mix of bargain-hunting and profit-taking in the local bourse this week”, Afrinvest said.

Read Also: Analysts Express Positive Disposition towards UBA Earnings Outlook

NSE Opens Positive despite Sell-offs in UBA Shares