Both the banking and the oil and Gas sectors rebounded monday with gains on their stocks to stop the persistent decline that was a feature of the Nigerian Stock Exchange (NSE) in May.
For 11 sessions consecutively, the stock market was bearish owing to investors flight in which billions of Naira was lost.
At the close of Monday’s trading however, the NSE All-Share index, rose by 0.4 per cent and closing at 36,947.10 basis points to signal a return to bullish.
Equally, the Market Capitalisation rose by the same margin to settle at N13.38 trillion.
An All-Share index is a series of numbers which shows the changing average value of the share prices of all companies on a stock exchange, and which is used as a measure of how well a market is performing whereas Market capitalization is the market value of a company’s outstanding shares.
Recall that sequel to Monday’s trading session, Afrinvest Limited, an indigenous wealth advisory firm with a focus on West Africa, had through its technical indicator, forecast a halt in the loosing streak.
“Technical indicator, using the 14-day Relative Strength Index (RSI) of 10.8, shows that the market is significantly oversold and is definitely set for an impressive rebound,” analysts at Afrinvest predicted.
Data from Monday Daily Official trading showed that the rebound was spurred by top traded stocks by volume – Guaranty Trust Bank(GTBank) which accounted for 67.2 million shares of the total volume, Sovereign Trust Insurance recorded 33 million shares whereas FBN Holdings notched 19.6 million shares.
Again, GTBank led transactions in value terms on the Nigerian bourse in value terms notching N2.7 billion, Nigerian Breweries recorded N1.1 billion whereas investors transacted N852.7 million worth of Nestle Nigeria Plc. shares.
Moreover, the Banking index topped the gainers’ chart, up 1.6 per cent on the back of buying interest in GTBank, Zenith Bank and Ecobank Transnational Incorporated (ETI) while the Oil & Gas index rose 0.3 per cent due to gains in Mobil, Forte and Eterna.
Afrinvest analysts are optimistic that the upward trend will be sustained by investors locking in on highly capitalised stocks.
“Whilst we are cautiously optimistic on the sustainability of today’s market rebound, we expect bargain hunting in large cap value stocks to continue driving positive performance in the near term,” they anticipated.
More so, the top performing stocks on the gainers’ table include Japaul Oil led other price gainers’ after notching 9.1 per cent more than other share price gainers, whereas Custodian Insurance and Eterna grabbed 4.9 per cent each.
On the flip side, Oando shed 9 per cent; Cadbury Nigeria, 8 per cent and Presco shaved 5 per cent.
Nevertheless, the equities have since the beginning of the year(year-to-date), recorded a drop of 3.4 per cent.
Comments are closed.