July 31, 2018
By InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market on Tuesday remained bullish, as the all-share index (ASI) gained +0.19 percent to 37,017.78 points to close in the green for the fourth consecutive session – the longest winning streak since June 7th – as investors’ reaction to positive earnings continue to spur gains, according to Cordros update.
The update says as a result, the Month-to-Date and Year-to-Date returns improved to -3.29 percent and -3.20 percent, respectively.
Cordros reports among the sectoral indices, the Consumer Goods index with a gain of +2.19 percent emerged the topmost gainer, owing to the 6.52 percent upturn in the shares of food and beverage producer, Nestle Nigeria Plc, following its impressive performance in its half-year (H1) 2018 results, which showed a 29.67 percent increase in the company’s profit after tax (PAT) to N29.78 billion.
The Insurance and Oil & Gas indices with gains of +1.27 percent and +1.22 percent respectively, while the Industrial Goods index appreciated by +0.09 percent to also close positive.
This is driven by the demand for the shares of insurer, Equity Assurance Plc and first dual listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc both gained +10.00 percent and +2.40 percent each, while cement manufacturer Cement Company of Northern Nigeria Plc climbed up by +3.33 percent.
On the flip side, sell pressure in the shares of lender, Diamond Bank Plc; led to a loss of -10.00 percent to led the decline in the Banking index by -1.42 percent.
Cordros reports that market breadth turned negative, with 24 losers and 17 gainers posted, led by Okomu Oil Plc which lost by -10.00 percent, while Equity Assurance Plc gained by +10.00 percent.
Total volume of shares traded declined by 23.31 percent to 244.97 million units, valued at N4.49 billion +47.45 percent and exchanged in 5,943 deals.
“Despite gains in today’s session, our outlook for equities in the near to medium term remains conservative, in the absence of a near term one-off positive catalyst; and more so, amidst brewing political concerns. However, stable macroeconomic fundamentals remain supportive of recovery in the long term,” the Cordros reported added.
