Banking stocks sustain uptick in Nigerian market as NSEASI closes marginally up 0.02%

The Nigerian bourse extended gains from the previous trading session Wednesday on the back of rebound in banking stocks, which saw benchmark index, the NSEASI, marginally up by 0.02 percent.

Gains in GUARANTY (+1.6 %), ZENITH (+1.5%) and UBA (+3.3%) ensured market index closed positive at 42,158.32 points, while year-to-date return remained flat at 10.2 percent.

The day’s marginal performance equally saw market capitalization inching up by N3.6 billion to close at N15.1 trillion. Activity level strengthened as volume and value traded rose 11.8 percent and 15.0 percent to 570.3 million units and N5.3 billion respectively.

Performance across sectors was mixed as two of five indices closed in the green, while three trended southwards.

The banking index advanced most by 1.1 percent due to gains in GUARANTY (+1.6 %), ZENITH (+1.5%), while the insurance index followed with 0.7 percent on the back of gains in CONTINSURE (+0.1%) and PRESTIGE (+0.02%).

Conversely, the oil & gas index declined the most, shedding 1.2 percent as investors sold off positions in CONOIL (-9.6%) and MOBIL (-4.5%). The consumer and industrial goods indices trailed, down 0.9 percent apiece, dragged chiefly by price depreciation in NESTLE (-0.7%), NIGERIAN BREWERIES (-2.7%), WAPCO (-1.8%) and CCNN (-4.3%).

Investor sentiment measured by market breadth (advance/decline ratio), though improving to 0.7x from 0.5x recorded previously, closed negative as 21 stocks advanced against 30 decliners. The top-performing stocks were JAPAUL OIL (+5.7%), CHAMPION (+4.8%) and CONTINSURE (+1.6%).

Other gainers on the day are UBA (+3.28 percent), FBN Holdings (+2.76 percent), Dangote Flour (+1.88 percent), Flour Mills (+1.72 percent), Access Bank (+1.60 percent), Guaranty Trust Bank (+1.59 percent), Zenith Bank (+1.45 percent), ETI (+0.26 percent), Dangote Sugar Refinery (+0.25 percent) and Unilever Nigeria (+0.10 percent).

The worst performers were CONOIL (-9.6%), UNIC (-6.2%) and FIDELITY (-5.7%). The other top losers include Courtville (-5.26 percent) and UAC-Property (-5.00 percent).

Custodian and Allied Insurance, FBN Holdings, Fidelity Bank, FCMB and Transnational Corporation of Nigeria topped the activities chart in terms of volume while Guaranty Trust Bank, FBN Holdings, Nigerian Breweries, Custodian and Allied Insurance and Cement Company of Northern Nigeria topped the trade value chart.

Analysts at APT Securities and Fund Limited attributed the day’s marginal gain to positive activities from low-cap stocks as most high-cap stocks took a flat stance.

For analysts at Afrinvest, the marginal gain on the day, as well as the improvement in sentiment, shows the market is gradually stabilizing. To this end they expect performance in subsequent trading sessions to remain positive.