Caution takes hold of investors as Nigerian bourse trades flat
Aderemi Ojekunle is a Businessamlive Reporter.
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Charles Abuede
Trading activity on the Nigerian Stock Exchange took on a calm disposition on Wednesday as caution took hold of investors’ actions on the local bourse.
Despite the few pockets of bargain hunting in the banking and consumer goods space, selling pressures on other large-cap stocks pushed back on the market gains midweek. However, investors and analysts anticipate positive sentiment will pervade the market in subsequent sessions, as investors position themselves ahead of the Q3 earnings releases.
The stock market benchmark index stood at 28,344.34 points at the end of Wednesday’s while market capitalisation and year to date (YTD) return remain unchanged at N14.8 trillion and 5.6 per cent respectively from the previous day’s trading.
Similarly, the performance across sectors was positive as 4 of 6 indices closed in the green. The insurance and banking indices led the pack, up at 0.6 per cent and 0.5 per cent respectively, following gains in Cornerstone Insurance (+5.0%) and Guaranty Trust Bank (+1.5%). Trailing, the consumer and industrial goods indices appreciated 2 per cent apiece due to price appreciation in PZ (+5.0%), Guinness Plc (+3.3%) and WapCo Plc (+2.1%). On the flip side, losses in ARDOVA (-3.6%) and E-Tranzact (-9.9%) dragged the oil & gas and AFR-ICT indices lower by 17 basis points and 4 basis points respectively.
Investor sentiment improves
Investor sentiment as measured by market breadth (advance/decline ratio) improved to 1.3x from the 1.2x recorded previously as 14 stocks gained against the 11 that declined. Eterna Plc (+9.8%), Academy Press (+7.4%) and Afri-Prudential (+5.8%) were top gainers while E-Tranzact (-9.9%), Wema Bank (-5.2%) and Court Ville (-4.8%) led the underperformers.
The NSE 30
The NSE 30 index marginally increased by 0.004 per cent to close at 1,212.28 points as against 1,212.23 points, on the previous day. Market turnover closed with a traded volume of 174.00 million units. Guinness and Lafarge Africa were the key gainers, while FCMB and Stanbic IBTC were the key losers.