Stock market closes higher on positive momentum

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Nigerian equities market sustained its positive momentum at ‎the close of trading Monday following gains recorded in the share
prices of some highly capitalised stocks such as: Nigerian Breweries Plc, Stanbic IBTC Plc, Nestle Nigeria Plc, FBN Holding Plc and Unilever Nigeria Plc.

The market had last week recorded impressive gains buoyed by renewed optimism driven by bargain hunters’ effort to take advantage of discounted stocks.

At the close of trading activities yesterday, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.07 per cent to close at 41, 501.40 from 41,474.39 attained last Friday.

Similarly, the market capitalisation increased to N13.7 trillion from N13.694 trillion last Friday. Also, trading activities appreciated by 37.66 per cent as investors bought 418.49 million shares worth N11.54 billion, in 6,063 deals, compared to 671.26 million shares worth N11.87 billion, in 5,869 deals exchanged last Friday.

The banking sector of the Financial Service Sector remained the most active in term of the number of shares traded. It led the equities sector with a total of 209.63 million ordinary shares valued at N3.16 billion made in 2, 275 deals.

The volume of shares sold in the banking sector was largely driven by the activity in the shares of Access Bank Plc, Guaranty Trust Bank Plc, Ecobank Transnational Incorporated Plc and Zenith Bank Plc. Trading on the shares of the four banks accounted for 159.07 million ordinary shares or 75.08 per cent of the subsectors turnover.

Meanwhile, Nestle Nigeria Plc, FBN Holdings Plc and Guaranty Trust Bank Plc, topped the list in terms of value.

The price movement chart of the NSE displayed a total of 31 stocks that recorded gains as against 27 on the losers table.
Forte Oil Plc led on the gainers table with N2.91 to close at N235.79, it was followed by Oando Plc which recorded gain of N1.74
to close at N19.95 while ETI Plc garnered N1.19 to close at N17.99.

Conversely, Berger Paints Plc led on the losers table with 70 kobo to close at N9.30, followed by MRS Oil with a loss of
N2.57 to close at N48.92.Analysts at Meristem Securities Limited maintained that the current Price earning(P/E) ratio of the Nigerian equities market (13.45 times) makes it cheaper and more attractive in comparison with its peers which have an average of 25.46
times.