Investors’ fortune took a positive turn at the Nigerian Stock Exchange (NSE) yesterday, following strong interest on the shares of BUA Cement Plc, MTN Communication Nigeria Plc and the five tier-1 banks, leading to N122 billion gains to investors.
This was after the market closed last weekend in the red with investors recording N118 billion losses.
Analysis of the day’s trading showed that the cement giant advanced by 3.8 percent; MTN appreciated by 1.7 percent, while the five tier-1 banks, Access Bank, FBN Holdings Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc and Guaranty Trust Bank rose by 2.26 percent, 1.85 percent, 1.50 percent, 0.90 percent and 0.84 percent.
Consequently, the All Share Index (ASI) went up to 25,249.90 point from 25,016.30 points, while the market capitalisation of all listed equities moved up to N13.172 trillion, indicating 0.93 percent increase.
Meanwhile, equity dealers have projected a mixed performance this week following a combination of profit taking and bargain hunting activities from investors with maturing OMO Bills.
Making a projection for the rest of the week, Ambrose Omorodion, a research analyst at Investdata, a Lagos-based investment banking firm, said the market would witness a mixed trend and performance.
He, however, stated that “price correction or pullback at this point will make the recovery process stronger.”
He also explained that the market is expected to slow down on profit taking and equity assets revaluation this month ahead of the second quarter (Q2’20) corporate earnings release and economic data.
Corroborating, analysts at United Capital Plc, another investment banking firm, said that a mixed bag of buying and selling interest would be recorded in the market “as the urge to take profit on tickers in the money fuels the supply side, while inflows from investors with net OMO maturity spur the demand side.”
Sectoral performance was positive, following gains in the industrial goods sector (+2.4%), insurance sector (+1.6%), banking sector (+1.1%), oil and gas sector (+0.2%) and consumer goods sector (+0.04%).