Equity Rebounds as Julius Berger, GTB, Others Lead NSE 0.6% Gain

Following renewed bargain-hunting in some bellwethers, especially in Julius Berger, Guaranty Trust Bank (GTB) and Dangote cement, the Nigerian equities market recorded the first gain for the year yesterday with the All- share index appreciating by 0.6 percent.

Specifically, at the close of transactions yesterday, the All Share Index (ASI) rose by 180.93 absolute points, representing a increase of 0.62 per cent, to close at 29,517.73 points. Similarly, market capitalisation increased by ₦67 billion to close at ₦11.007 trillion.

The improved performance was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Julius Berger, Guaranty Trust Bank, Dangote Cement, Cement Company of Northern Nigeria (CCNN) and Forte Oil.

Analysts at Afrinvest Limited noted that bearish sentiment still clouds the market largely due to political risks.

“We envision profitable opportunities in short-term trading on bellwethers as they have been the dominant influences of market performance in recent times.”

Market breadth closed positive, recorded 21 gainers against 16 losers. Law Union and Rock Insurance recorded the highest price gain of 10 per cent, to close at 55 kobo, per share. Julius Berger followed with a gain of 9.86 per cent, to close at ₦28.40, while Eterna rose by 8.86 per cent to close at ₦4.30, per share.

Guaranty Trust Bank appreciated by 6.07 cent to close at ₦33.20, while Transnational Corporation of Nigeria (Transcorp) went up by 5.93, per cent to close at ₦1.25, per share. On the other hand, Guinness Nigeria led the losers’ chart by 10 per cent, to close at ₦63, per share. NEM Insurance followed with a decline 9.95 per cent to close at ₦1.72, while UPDC Real Estate investment Trust shed 9.85 per cent to close at ₦5.95, per share.

Resort Savings & Loans lost 9.76 per cent to close at 37 kobo, per share, while Linkage Assurance declined by 9.72 per cent to close at 65 kobo, per share.

Total volume of trades increased by 64.03 per cent to 385.29 million units, valued at ₦3.07 billion and exchanged in 3,677 deals. Transactions in the shares of custodian Investment topped the activity chart with 120.27 million shares valued at ₦697.61 million. Access Bank followed with 60.48 million shares worth ₦317.38 million, while FBN Holdings traded 48.87 million shares valued at ₦347.24 million.

Diamond Bank traded 37.15 million shares valued at ₦72.05 million, while United Bank for Africa (UBA) transacted 26.96 million shares worth ₦195.47 million.

By Helen Oji

The Guardian Newspaper January 11th, 2019

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