By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Nigerian stocks on Monday recorded a marginal growth as all-share index (ASI) climb up 0.68 percent to close at 34,663.92 basis points, compared with the a gain of 5.01 percentrecorded previously. While market capitalisation appreciated by N77.86 billion to close at N11.48trillion.
According to Cordros update, with six (6) straight set of gains (beginning 18 December), the benchmark index is currently in positive 0.35 percent Month-to-Date (M-t-D) and has helped reduced the Year-to-Date (YtD) deficit by 16.13 percent.
In terms of sectoral indices, at the end of transactions on the Nigerian bourse, four (4) out of the five (5) sectoral indices appreciated.
The NSE Alternative Securities Market NSE (ASem) emerged the top gainer with a gain of 2.51 percent, followed by the Consumer Goods index with a 2.48 percent increase, while the Banking and Oil/Gas indices followed with 1.99 percent and 0.32 percent growth respectively.
On the contrary, the NSE Insurance emerged the top loser in terms of sectoral performance with a loss of 0.81 percent, followed by the Industrial Goods index which lost 0.55 percent.
Market breadth at the Nigerian equities market closed a positive note recording 37 gainers and 25 losers.
First listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc topped the gainers chart with a gain of N33.01, while oil marketing company, Conoil Plc topped the losers table with a loss of N4.33.
Proshare analysis affirmed that the stock hit its 62 weeks low as both investors and shareholders sustained the prolonged negative sentiments towards it to close among the battered stocks on the Nigerian bourse.
‘’In addition, the stock recorded a lower breakout, hitting below lower Bollinger band by 19.2 percent as sell pressure gained tempo with significant surge in bearish volume to close depressed in an oversold region,’’ the Proshare report added.
Similarly, turnover on the NSE was moved northwards by 6.57 percent compared to 32.01 percent recorded at the last session as volume traded climbed up by 6.57 percent to 620.15 million shares valued at N4.68 billion traded in 4,606 deals.
‘’Today’s gain, which is the weakest since the beginning of the current bullish form, suggests that a correction is imminent,’’ the Cordros update affirmed.
