Stock Market Performance Strengthens

Photo L-R: Haruna Jalo-Waziri, Executive Director, Business Development, The Nigerian Stock Exchange (NSE); U.K Eke, Group Managing Director (Designated) FBN Holdings Plc;  Nnamdi Okonkwo, Chief Executive Officer, Fidelity Bank Plc and Ebenezer Onyangu, Executive Director, Zenith Bank Plc at the Closing Gong Ceremony at The NSE recently.

The performance of trading activities at the Nigerian Stock Exchange (NSE) on Monday was strengthened as market indices consolidated the marginal gains recorded last Friday.

For the second consecutive trading session running, the NSE All Share Index (ASI) closed 0.2% higher today to settle at 30,231.16 basis points. Equally, market capitalisation added ₦2.7 billion to close at ₦10.4 trillion.

This is attributable to buying interests recorded in ZENITH BANK (+3.1%), FORTE OIL (+3.9%) and GUARANTY (+1.4%). Market activities as measured by volume and value were mixed as volume declined by 28.4% while value of transactions increased by 10.8%. At the close of market, investors exchanged 134.6 million units of shares valued at ₦1.5 billion.

Mixed Performance Across Sectors
It was a mixed close for sector indices today with the banking, insurance and oil & gas indices trading within the positive territory while the consumer and industrial goods sectors closed negative. The banking index led the pack of sector gainers with 0.9% attributable to increases in ZENITH BANK (+3.1%) and GUARANTY (+1.4%).

Similarly, there was a 0.7% rise in the insurance index majorly attributable to price appreciations in MANSARD (+2.1%) and CUSTODIAN (+1.7%). In the same manner, the oil & gas index improved 14 basis points. However, against depreciations in NIGERIAN BREWERIES (-1.4%) and CUTIX (-5.0%), the consumer and industrial goods sectors waned 0.3% and 4 basis points, respectively.

Market Sentiments Improve Further
Market breadth, measured by the ratio of advancers to decliners stayed positive today as 25 stocks advanced against 15 declining stocks. FCMB, EVANSMED and NAHCO topped the gainers' list with 6.2%, 5.0% and 4.9%, respectively; while CUTIX (-5.0%), HONEYFLOUR (-4.7%) and LEARN AFRICA (-4.3%) led the losers' chart.

Whilst the recent activities of lurking bargain hunters in the market are noted, analysts at Afrinvest are of the view that the gains on the bourse may be short-lived in the near term though the Q3:2015 results are expected to continue to drive market performance in the interim.