By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market on Thursday rebounded from a two (2)-day rout as all share index climbed up 1.02 percent to close at 27,183.64 points, while market capitalisation rose by N93.90 billion to N9.34 trillion.
“Today’s gain cut the Month-to-Date and Year-to-Date losses to 1.73 percent and 5.09 percent respectively,” Cordros daily market update affirmed.
The update says the trend is coming on the heels of upbeat sentiment across major counters such as cement producer and Nigeria’s most capitalised quoted company, Dangote Cement Plc, Nigeria’s top tier lender, Zenith Bank Plc and beermaker, Nigerian Breweries Plc
According to Cordors, at the end of the session, the Banking index gained 0.52 percent, following renewed interest in financial holdCo, FBN Holdings Plc, lenders, ZENITHBANK and Guaranty Trust Bank Plc; all appreciating by 2.63 percent, 2.28 percent and 0.57 percent apiece.
Similarly, price appreciations in the shares of food and beverage producer, Cadbury Nigeria Plc and Nigerian Breweries by 10.02 percent and five (5) percent each buoyed the Consumer Goods sector by 1.46 percent. While cement producers, Lafarge Cement Wapco Nigeria Plc and DANGCEM climbed up five (5) percent and 1.80 percent respectively to boost the Industrial Goods index by 2.70 percent.
The Cordros report says on the downside, the Insurance and Oil and Gas indices both declined by 1.98 percent apiece, owing to losses recorded in the shares of Axa Mansard Insurance Plc, reinsurer, Continental Reinsurance Plc and AIICO Insurance Plc by 4.98 percent, 4.55 percent and 2.67 percent each. While Eterna Plc, oil marketers, Forte Oil Plc and Oando Plc declined by 4.87 percent, 2.45 percent and 2.33 percent respectively.
At the close of the day’s trading on the Nigerian bourse, market breadth remained negative, with 23 gainers and 31 losers posted the NSE daily market statistics reported. Cadbury emerged the top gainer with a gain of N1.84 per share; while cement manufacturer, Cement Company of Northern Nigeria Plc topped the losers chart with a loss 0.76 kobo per share
In terms of turnover, total volume traded on the Nigerian Stock Exchange (NSE) eased by 5.70 percent to 332.23 million shares, valued at N2.16 billion, and exchanged hands in 4,167 deals.
“We view today’s gain as a dead-cat bounce, driven by exaggerated sell-offs in the previous two sessions. Thus, we expect losses to resume in tomorrow’s session,” the Cordros update added.
