By OLUSHOLA BELLO, Lagos
The Nigerian stocks market sustained its bullish performance last week as investors remained optimistic of positive half year corporate earnings which have begun to trickle in.
Consequently, the All Share Index advanced on all trading sessions of the week, rose by 758.71 points or 2.28 per cent week-on-week to close at 34,020.37 points, while Year-to-Date gain increased to 26.59 per cent. Also, investors gained N262 billion in value as market capitalisation increased to N11.725 trillion.
Performance was largely buoyed by investor reaction to positive earnings surprises by Unilever Nigeria and Wapco, as well as increased positioning in Dangote Cement, Nigerian Breweries and Guaranty Trust Bank.
Analysts at Cordros Capital noted that, “During the week, activity was broadly bullish as the market closed positive on all the trading sessions, driven by investors’ bargain hunting in value stocks ahead of half year earnings releases.”
Performance across sectors was broadly positive as all indices trended northward on weekly basis except for the Insurance index which declined by 2.81 per cent due to depreciation in Mansard Insurance and Continental Reinsurance. The Industrial Goods index led sector gainers, appreciated by 6.97 per cent on account of upticks in Dangote Cement and Wapco.
The Consumer Goods index trailed performance, rising 2.97 per cent on account of rally in Unilever and Nigerian Breweries. Similarly, the Banking index advanced 2.38 per cent due to gains in Guaranty Trust Bank and Zenith Bank, while the Oil and Gas index inched 0.39 per cent northwards due to improved sentiment towards Forte Oil and Seplat.
Market breadth remained positive, with 35 gainers as against 32 losers. Total volume traded increased by 206.54 per cent to 3.63 billion shares, with UBA, Continental Reinsurance and Niger Insurance accounting for 69.73 per cent of the market volume. On the other hand, the value of trades appreciated by 163.27 per cent to N34.89 billion, with UBA, Guaranty Trust Bank, and Zenith Bank accounting for 72.11 per cent of total value.
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