NSE Benchmark Index Advance as Buying Momentum Persist

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By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Buying momentum persisted Thursday on the Nigerian Stock Exchange (NSE) as the all-share index (ASI) advanced 0.43 percent to close at 27,236.78 points.

“Today’s activities further decreased the Month-to-Date and Year-to-Date losses to 3.88 percent and 5.07 percent respectively,” according to Cordros daily market update.

The update reports that the Industrial Goods index closed higher by 3.45 percent, following a rally in the shares of cement manufacturers, Lafarge Cement Wapco Plc  and Dangote Cement Plc both gaining 9.23 percent and 0.48 percent each–despite  DANGCEM’s unimpressive nine-month 2016 earnings.

Gains in the shares of food and beverage maker, Cadbury Nigeria Plc and soap and detergent producer, Unilever Nigeria Plc by 9.43 percent and 4.14 percent each buoyed the Consumer Goods index by 0.40 percent.

In the same vein, the Banking index appreciated by 0.08 percent, on the back of price increases in the shares of top tier lenders, Access Bank Plc, Ecobank Transnational Incorporated and Diamond Bank Plc all gaining 0.53 percent, 2.77 percent and 0.88 percent apiece.

On the flipside, the Oil & Gas index shed weight by 0.47 percent on selloffs in the shares of first dual listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc losing 3.85 percent– owing to its weak Q3-2016 earnings — and Forte Oil Plc lost by 4.90 percent, the trend more than offset gains recorded by Total Nigeria Plc which appreciated in share price by 10.25 percent and whose nine-month 2016 earnings enthused investor appetite. The Insurance index lost by 0.07 percent to take a hit, pressured by the loss recorded by AIICO Insurance Plc by 1.75 percent.

At the close of the session on the Nigerian bourse, market breadth was negative, with 15 gainers and 18 losers, according to data from the NSE. Total emerged the top gainer with a gain of N29.72 per share; while drugmaker May & Baker Nigeria Plc topped the losers list with a loss of 0.08 kobo per share.

In terms of turnover, total volume traded on the Nigerian equities market at the close of trading decreased by 2.75 percent to N155.59 million shares, valued at N1.76 billion, and traded in 2,646 deals.

“We expect gains to be sustained in tomorrow’s session,” the Cordros report affirmed.

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