Stock Market Rally Lifts Year-to-date Return to 15.55%
Stock market rally has lifted year-to-date return (YTD) to 15.55% as market capitalisation expanded to ₦16.207 trillion.
Compare with previous trading session, the equities segment of the Nigerian Stock Exchange (NSE) rises further at the close of trading session on Friday.
Investors’ continued apprehension towards BUA Cement Plc (-5.39%) and Flour Mills of Nigeria Plc (-1.45%) stocks had significantly weighed on the market for most of the trading session, says analysts at Chapel Hill Denham.
However, strong interest in a heavyweight Dangote Cement (+3.25%), especially at the twilight of the day, swung the benchmark index into the positive terrain.
The NSE All-Share Index notched a 90 basis points higher relative to the previous session to 31,016.17pts.
“We believe better than expected 9M-20 earnings published by DANGCEM must have triggered today’s interest in the stock”, says Chapel Hill Denham.
For the sake of evidence, DANGCEM grew PAT by more than two-fold in Q3-20, mostly driven by a volume induced growth in topline and significant moderation in finance charges.
Against the preceding, the year-to-date return grew to 15.55%, while market capitalisation, equally expanded to ₦16.207 trillion.
At the close of the market, Ecobank Transnational Inc. (+9.80% to ₦5.60), C&I Leasing Plc (+9.60% to ₦4.34), and Livestock Feeds Plc (+9.28% to ₦1.06) were today’s top gainers.
Meanwhile, AXA Mansard Insurance Plc (-9.09% to ₦2.00), Prestige Assurance Co. Plc (-8.62% to ₦0.53), and NEM Insurance Plc (-8.07% to ₦2.05) were today’s top losers.
Performance across our coverage universe was mixed, with 3 of 5 of our coverage indices closing in the green.
Specifically, the NSE banking, NSE consumer, and NSE industrial goods indices closed positive, gaining 339bps, 60bps, and 5bps, respectively, driven by GUARANTY (+3.72%), DANGSUGAR (+6.11%), and DANGCEM.
The foregoing offset weaknesses across the NSE oil & gas and NSE insurance goods indices, both of which dipped by 21bps and 268bps, respectively.
The market’s activity was broadly strong, with volume traded growing by 48.21% to 637mn units, valued at ₦5.229bn.
Most traded stocks by volume were Omoluabi Mortgage Bank Plc (168.50mn units), First Bank of Nigeria Plc (91.37mn units), and Sterling Bank Plc (51.50mn units).
On the other hand, the top traded stocks by value are Stanbic IBTC Holdings Plc (₦0.656bn), Zenith Bank Plc (0.650bn), and FBN Holdings Plc (₦0.595bn).
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Elsewhere, the Chapel Hill Denham’s Paramount Equity Fund (PEF) and the Women Investment Fund (WIF) both notched higher by 1.86% and 1.09%, respectively.
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Stock Market Rally Lifts Year-to-date Return to 15.55%
