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Equities Market extends gain on positive momentum

By on February 25, 2015

The Nigerian equities market extended its positive momentum for sixth consecutive days on Monday as investors continued with their bargain hunting.

The Nigerian Stock Exchange (NSE) All-Share Index (ASI), which jumped by 6.5 per cent last week,  appreciated by 1.39 per cent yesterday as  trading resumed for  the week at the Nigerian stock market.  Similarly,  the market capitalisation added N136.54 billion to close at N9.94 trillion, while ASI settled at 29,793.13. The growth has reduced the market’s year-to-date decline to 14.03 per cent.

A total of  26 stocks appreciated compared with 15 price losers.  Four out of the five NSE Sectoral indices gained, led by the NSE  Banking Index  with  a 2.97 per cent. The NSE Consumer Goods  Index went up 1.59 per cent, while the NSE  Oil/Gas Index rose by 0.42 per cent. The NSE  Industrial Goods Index appreciated by 0.15 per cent, while  the NSE  Insurance Index was the only loser, shedding  0.48 per cent decline.

According to analysts at Meristem Securities Limited, the gain in the equities market was majorly driven by the rallies on banking and consumers goods stocks which currently trade below their fundamentally justified prices.

“However, due to the cyclical performance of the market since the beginning of the year, we advise cautious trading as we opine that the market might not sustain this momentum going forward,” they said.

Meanwhile, Access Bank Plc led the price gainers, chalking up 8.7 per cent to close at N6.09 per share. Flour Mills of Nigeria Plc followed with a gain of 8.01 per cent to close at  N34.00 per share.

Access Bank is currently shopping for N52.6 billion from the capital market via a Rights Issue. Managing Director of the bank,  Mr. Herbert Wigwe , recently called on investors to  patronise the issue, saying  the bank  would deliver good return on their investments going forward.

According to him, investors should take position  through the issue given the strong fundamentals of the bank and strategies being put  in place to deliver improved returns.

 

[ThisDay]