Post-election trading: activity in high cap stocks pushes index up

February 26, 2019
198 Views

As investors await the results of the 2019 Presidential elections, strong rally in the equities of highly capitalised stocks drove the domestic bourse into a high momentum mode on Monday.

Nigerian Breweries which appreciated 4 percent, Zenith Bank’s growth of 1 percent and Dangote Cement’s 0.1 percent increase drove the All Share Index (ASI) 0.57 percent higher to 32,700.12 points.

Year to date gains consequently inched northwards to 4.0 percent while market capitalisation improved slightly by N68.8 billion to settle at N12.2 trillion.

Activity level was however mixed as volume traded decreased 0.4 percent to 219.7m units while value traded increased 147.7 percent to N5.5 billion.

Nigerian Breweries, Diamond Bank and Access Bank emerged the top traded stocks by volume as investors exchanged 42.7m units, 30.8m units and 20.7m units of their stocks respectively. Leading top traded by value were Nigerian Breweries N3.6bn, Guaranty Trust Bank N733.9m and Zenith Bank N337.0m

All five major sector indices closed in the positive territory with the Consumer Goods index leading by an appreciation of 1.3 percent on the back of buying interests in Nigerian Breweries (+4.0%) and Dangote Flour (+10.0%).

The Insurance and Banking indices trailed appreciating 1.1 percent and 0.8 percent due to gains in NEM Insurance (+3.4%), Sovereign Insurance (+8.7%), Zenith Bank (+1.0%) and UBA (+2.5%).

In the same vein, the Oil & Gas index advanced 0.1 percent as Mobil (+1.1%) and Oando (+1.5%) closed in the green.

Lastly, the Industrial Goods index closed flat with a bullish bias as investors took advantage of bargain opportunities in Dangote Cement (+0.1%) towards the end of Monday’s session.

Market breadth closed higher than Friday’s as 25 stocks advanced against 8 decliners. The top performers today were Dangote Flour (+10.0%), ABC Transport (+9.6%) and Veritas Kapital (+9.5%) while UNIONDAC (-6.5%), Total (-2.6%) and Cutix (-1.6%) led laggards.

Outlook for the coming sessions remain cautious as equities market analysts at Afrinvest maintain that market direction this week will be largely determined by the outcome of the election.

You may be interested

UCL: Atletico Madrid Will Come Out Stronger Against Borussia Dortmund –Simeone
Sports
1 views
Sports
1 views

UCL: Atletico Madrid Will Come Out Stronger Against Borussia Dortmund –Simeone

Webby - April 16, 2024

Atletico Madrid coach Diego Simeone has disclosed that the team has a stronger game plan to overcome Borussia Dortmund in…

7 Players Who Merit Super Eagles Call-up For Next 2026 W/Cup Qualifiers
Sports
1 views
Sports
1 views

7 Players Who Merit Super Eagles Call-up For Next 2026 W/Cup Qualifiers

Webby - April 16, 2024

The Super Eagles will take on South Africa and Benin Republic in the 2026 FIFA World Cup qualifiers in June.After…

The Hidden Truth That Led To Killing Of 17 Soldiers In Okuama Delta State
News
4 views
News
4 views

The Hidden Truth That Led To Killing Of 17 Soldiers In Okuama Delta State

Webby - April 16, 2024

A feud between an illegal oil bunker, Endurance Okodeh alias Amangbein and a sophisticated cartel of powerful illegal oil bunkers…

Leave a Comment

Your email address will not be published.