Chinwendu Obienyi
Price appreciation coupled with strong investor sentiment in the Industrial goods and Banking stocks, returned the equities market on a positive trajectory with the All Share Index (ASI) rising 0.54 per cent to settle at 26,456.39 points at the close of yesterday’s proceedings.
Some analysts had attributed this development to the Central Bank of Nigeria (CBN)’s recent restriction of individuals, local corporates and non-banking financial institutions from participating in both the primary and secondary markets for Open Market Operations (OMOs), as investors’ focus shifts towards equities due to current low prices and attractive dividend yields.
Consequently, market’s year-to-date (YTD)return eased to -15.8 per cent while its capitalisation increased by N69 billion to N12.878 trillion. Activity level was mixed as volume of stocks traded fell by 12.5 per cent to 378.3 million units while value of stocks traded rose by 28.2 per cent to N7.15 billion, that changed hands in 4,798 deals.
Zenith Bank was top on the activity chart with the sale of 86.54 million shares valued at N1.52 billion. Access Bank traded 73.03 million shares worth N682.91 million while GT Bank transacted 37.13 million valued at N1.05 billion.
Investor sentiment as measured by market breadth (advance/decline ratio) steadied as 18 stocks appreciated while 11 others depreciated. CCNN topped the gainers’ chart with 9.14 per cent to close at N19.10 per share, Union diagnostics was next with 9.09 per cent to close at 0.24 kobo, Cornerstone increased by 8.16 per cent to close at 0.53 kobo, Chip Plc notched up 7.69 per cent to close at 0.42 kobo while Wema Bank gained 6.78 per cent to close at 0.63 kobo.
On the flipside, Ikeja Hotel topped the losers’ chart with 9.28 per cent to close at 0.88 kobo per share. Courtville followed with 8.70 per cent to close at 0.21 kobo, Wapco lost 3.74 per cent to close at N14.15, FBN Holdings dropped 3.45 per cent to close at N5.60 while Jaiz Bank fell by 3.45 per cent to close at 0.56 kobo.
Reacting, analysts at Afrinvest, said they do not expect the gains to be sustained as sentiment towards equities remains lacklustre.