Equities market rebounds as investors gain N2.59tn

Equities market rebounds as investors gain N2.59tn

A day after a 5.01 per cent decline in the All-Share Index of the Nigerian Exchange Limited, it rebounded to close trading in the green zone for the first time in days.

Both the ASI and the market capitalisation of the NGX appreciated by 2.88 per cent to 145,403.83 points and N92.48tn. This handed a gain of N2.59tn to investors.

The PUNCH reports that bearish trading ruled the NGX on Tuesday, leading to the ASI crashing by 5.01 per cent, in what some analysts described as the worst decline since 2010, to close at 141,327.30 points. Investors also recorded a daily loss of N4.64tn, with only four stocks appreciating and 61 settling on the losers’ chart.

The midweek trade rebound was driven by bargain-hunting in blue-chip stocks such as MTN Nigeria (+9.95 per cent), Aradel (+8.93 per cent), Nigerian Breweries (+10.00 per cent), and some banking counters including Guaranty Trust Holding Company (+10.00 per cent) and Zenith Bank (+10.00 per cent). Trading activities picked up significantly as the volume of traded stocks rose by 22.93 per cent to 806.39 million, valued at N50.79bn, representing a 72.77 per cent appreciation. Despite the increase in the value and volume of traded stocks, the number of deals declined by 17.08 per cent to 24,509. Market breadth was decisively positive, as 65 gainers overwhelmed 11 losers. GTCO led the volume chart with 104.8 million units (13.0 per cent of total volume) traded, while Aradel led the value chart with N12.9bn (25.4 per cent of total value) worth of trades. Financial services stocks Access Corp, Ecobank Transnational Incorporated, GTCO, and AXA Mansard led the gainers’ chart with the maximum 10 per cent daily increase.

The stocks of Nigerian Breweries, Oando, PZ Cussons, Royal Exchange, Sovereign Trust Insurance and Coronation Insurance also enjoyed 10 per cent price appreciation. On the losers’ chart were Vitafoam, Transcorp Power and Austin Laz, whose stocks declined by 10 per cent. Redstar Express and Abbey Mortgage Bank also recorded 9.80 per cent and 9.72 per cent depreciation, respectively.

Expectedly, sectoral performance was bullish as the banking index surged 7.39 per cent, followed by Insurance (+6.95 per cent), Oil & Gas (+4.11 per cent), Consumer Goods (+2.27 per cent), and Industrial (+0.43 per cent). Only Commodity (-0.03 per cent) registered a marginal decline.

Cowry Asset Management Limited maintained that the trading pattern suggested that institutional investors were at play “through large block transactions, signalling strategic positioning as investors capitalise on attractive entry points following Tuesday’s sharp correction.”

Source: https://punchng.com/equities-market-rebounds-as-investors-gain-n2-59tn