Nigerian stocks rebounds with N18b gain as analysts see stable macroeconomic fundamentals spur economic recovery

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After five days of consecutive negative session, Nigerian equities witnessed marginal recovery yesterday as bargain-hunters increased buy orders for value stocks. While there were more decliners than advancers, gains by large and mid-cap stocks roused the market to its first gain in six days.

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Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average gain of 0.15 per cent, equivalent to net capital gain of N18 billion. Average year-to-date return, though still negative, improved to -0.22 per cent.

The All Share Index (ASI)- the common value-based index that tracks share prices at the Exchange, inched up to 31,360.28 points as against its opening index of 31,313.36 points. Aggregate market value of all quoted equities rose from its opening value of N11.677 trillion to close at N11.695 trillion.

Sectoral indices showed mixed performance across the sectors. The NSE Banking Index rose by 0.04 per cent. The NSE Consumer Goods Index appreciated by 1.60 per cent while the NSE Oil and Gas Index closed flat. However, the NSE Industrial Goods Index declined by 0.35 per cent while the NSE Insurance Index dipped by 0.02 per cent.

There were 13 advancers against 18 decliners. Nestle Nigeria, NSE’s highest-priced stock, led the rally with a gain of N69.90 to close at N1,549.90. CAP followed with a gain of N3.40 to close at N37.40. Okomu Oil Palm added N1 to close at N80. Eterna rose by 40 kobo to close at N4.80. Sterling Bank chalked up 21 kobo to close at N2.36 while Guaranty Trust Bank added 20 kobo to close at N35.70 per share.

On the negative side, Guinness Nigeria led the losers with a loss of N3.15 to close at N64. Dangote Cement lost N2 to close at N192. Dangote Flour Mills declined by 50 kobo to close at N9.50. Africa Prudential dropped by 37 kobo to close at N4.55 while UAC of Nigeria lost 20 kobo to close at N7.80.

“Today’s rebound in the domestic equities market was in line with our expectations, and in our view, sustained bargain hunting will further buoy market performance over the near term,” Afrinvest Securities stated.

Total turnover stood at 377.49 million shares valued at N2.26 billion in 3,273 deals. Diamond Bank led the activities chart with a turnover of 113.6 million shares worth N283.36 million. Chams followed with 72.15 million shares worth N14.43 million while FBN Holdings placed third with 71.53 million shares worth N586.23 million.

Analysts at Cordros Capital remained cautious, urging investors “to trade cautiously in the short term” while reiterating optimism that “stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term”.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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