Stocks rise as optimism gains tempo on NSE
YESTERDAY, the positive sentiments that prevailed last week were sustained as the market closed positive. Analysts believed that exposure to small-medium and micro-cap stocks can provide extra diversification for a portfolio without reducing longer-term expected returns.
Therefore, equities market closed yesterday on a positive note, as Nigerian Stock Exchange [NSE] All Share Index [ASI] appreciated by 1.83 per cent to close at 30,052.29 basis points, compared with the 0.40 per cent appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 13.29 per cent.
Market breadth closed positive as UBA led 34gainers against 15losers topped by Caverton at the end of yesterday’s session- an improved performance when compared with previous outlook.
Market turnover closes negative as volume declined by 22.64 per cent against 1.42 per cent uptick recorded in the previous session. UBA, Zenith Bank and Access were the most active to boost market turnover.
UBA and Zenith Bank topped market value list. Volume shockers included Costain which led the list of active stocks that recorded impressive volume spike at the end of yesterday’s session.
Analysts believe the swing in market mood was largely due to profit taking activities by market participants following four consecutive days of gains. We expect sustained changes in investor sentiments in the coming weeks, as the market continues to react to news flows.
At the bond market, selling activities were sustained last week as offshore investors continued to reduce their exposure to FGN securities whilst slight demand from domestic investors was witnessed. As a result, yields rose by an average of 15bps across all trading benchmarks.
The fixed income Over-The-Counter market was predominantly bullish as elevated system liquidity resulted to increased buying activities especially across the short to mid-tenored maturities whilst the long end witnessed mild sell off. Consequently, yields declined by an average of 43 basis points across the curve.
Market capitalisation reduced by N16.35 billion ($0.08 billion) and closed at N4.54 trillion ($23.05 billion) from previous week’s figure of N4.56 trillion ($23.13 billion)