Stocks halt prolonged sell trend as new investments begin
Domestic equities delivered a positive return yesterday following eight days of losses; however, 128 tickers closed in a net offer position, indicating persistent selling pressure.
Analysts believe yesterday’s performance was due largely to bargain hunting given the attractive price levels.
In addition, almost all sectoral indices recorded positive performance with Banking (0.28 per cent) and industrial goods (0.28 per cent) taking the lead.
Hence, the All Share Index [ASI] appreciated by 0.22 per cent to close at 30,247.83.
The major drivers of yesterday’s performance were Dangote Cement (0.58 per cent, ₦172), Forte Oil (1.06 per cent, ₦190), GTBank (0.30 per cent, ₦23.06), Flourmill (4.93 per cent, ₦30.43), and Guinness (3.93 per cent, ₦130.02).
Market breadth however closed negative as Flourmill led 21 gainers against 22 losers topped by Academy at the end of yesterday’s session- an improved performance when compared with previous outlook.
Meanwhile, the National Association of Securities Dealers[NASD] has launched the unlisted securities index
The Unlisted Securities Index is adapted from the Value-weighted approach for calculating market indices. Rather than using a total market capitalisation of each underlying company as a weight, the association uses the capitalisation of the dematerialised securities.
‘’This way, we will get a closer representation of the size and pricing of ‘available to trade’ securities’’, it said.
After more than 60 days of consecutive trading, sporadic deals and price volatility are being replaced by consistent trading and steady price making. NASD said it is more convinced that a price index at this point will closely reflect investor sentiment about unlisted public securities while expecting that it will provide a useful guide to the larger asset managers who are interested in investing through the NASD OTC market.