Equity market maintains positive trend … As analysts advise investors to seek for undervalued stocks
Equity market maintains positive trend
… As analysts advise investors to seek for undervalued stocks
THE Nigerian equities market today maintained positive stance at the close of trading session as bourse added N79 billion to its market capitalization.
The gain recorded today pegged the year-to-date returns at 38.18 percent. The index and market capitalization closed higher at 37,135.23 basis points and N12.799 trillion respectively. Market breadth ended in favour of bull with 25 gainers to 17 losers at the close of today’s trading.
However, Dangote Sugar Refinery Plc led the gainer’s chart with 9.80 percent from N12.75 kobo it opened to close at N14.00 kobo per share. It was followed by C & I Leasing Plc with 9.09 percent gain from N0.88 kobo to end at N0.96 kobo per share, while Airline Services and Logistic Plc appreciated by 4.94 percent, from N5.26 kobo to close at N5.52 kobo per share.
On the loser’s table, Cutix Plc led with -5.00 percent from N2.20 kobo to close the day at N2.09 percent. NPF Microfinance Plc dropped -476 percent, from N1.26 kobo per share to N1.20 kobo, while May & Baker Plc dropped -4.66 percent to close at N3.07 kobo from N3.22 kobo per share.
Market activities rose from previous level as Volume of trades ascended by 64.18 percent to close at 412 million shares in contrast to 251 million shares traded in previous session. Value also followed suit with 25 percent incline to close at 4.72 billion today as against N3.78 billion from previous trading levels. Transactions in the shares of Livestock Feed Plc, Access Bank Plc, Guaranty Trust Bank Plc, Transnational Corporation of Nigeria Plc and Zenith Bank Plc topped the activity chart as most traded equities as measured by volume.
The equities market rode on the back of banking stocks and Consumer goods stocks to strengthen its positive outlook.
Meanwhile, analysts at APT Securities and Funds Limited said the outcome of today’s trading opposed their expectation as the equities market proved beyond a cliche to establish a 3 day rally from the month start.
They believed that the upward trend recorded is not unconnected to stability of investors’ confidence as domestic investors outplayed foreign investors in just concluded trading month.
“Domestic portfolio participation in equities trading amount for 53.91 percent as against foreign inflow of 46.09 percent. There is still room for an upward rally, though day traders may at some point take off profit to re-balance their position.”
They however advised value investors to seek for undervalued stocks in order to benefit from both short term and long term returns.
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