Equities investors gain N434.6bn in February amid positive outlook for March

Equity investors on the Nigerian Stock Exchange (NSE), gained a total of N434.6 billiion in the month of February 2019, as market capitalisation stood at N11.829 trillion; while the benchmark All-Share index appreciated by 3.67 per cent to 31,721.76 basis points.

The market returns appreciated in the month of February despite predictions of elections jitters and  of N194.84 billion loss recorded on the last day of teading for the month on the back of profit taking in blue-chip stocks like Nestle Nigeria, Seplat Petroleum Development Company, Nigerian Breweries and Guaranty Trust Bank.

At the end of trading for the month, Seplat still gained N84, recovering partly from its N105 loss in January; Nestle also recovered N30 from prior month’s N45 loss; the N19 by Beta Glass was enough to wipe off its N8.30 loss in January; Presco gained N15, which more than atoned for the N4.00 loss it sustained in the preceding month; just as NB’s N5.50 was not enough to wipe off its N11.50 decline in January. Dangote Cement grabbed N5.30 in February; Dangote Flour, N4.90; CAP Plc, N2.25; while Guinness Nigeria and PZ Cussons grabbed N2.15.

Other gainers during the month were: GTBank, N1.90; Julius Berger, N1.50; Zenith Bank and Flour Mills of Nigeria, N1.40 apiece; NASCON Allied Industries, N1.30; Berger Paints and Stanbic IBTC, N1.25; and Dangote Sugar Refinery, N1.00 each. Oando gained 95 kobo; Union Bank, 75 kobo; African Prudential, 70 kobo; and United Bank for Africa gained 65 kobo; among others.

On the other hand, Total Nigeria lost N33.30, dampening the gains that would have been garnered for the month of February. Other declinerswere International Breweries and Cement Company of Northern Nigeria shed N4 each; C&I Leasing, N2.43; MRS, N2.30; Okomu Oil Palm, N2.00; Forte Oil, N1.50; and Vitafoam, 80 kobo.

Weekly analyses indicated that equities market extended its bearish run from the prior week, as the benchmark index shed 2.1 per cent w/w to 31,827.24, moderating its Year to Date gains to 1.26 per cent.

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Across sector indices indicates losses in the Banking (-5.88%), Consumer Goods (-2.91%), and Oil & Gas (-1.33%) indices, offset gains in the Industrial Goods (+0.93%), and Insurance (-3.01%) indices respectively.

Following the conclusion of the general election, analysts at Cordros Securities anticipated an equities market pick-up as the tense political environment moderates.

“However, we reckon that investors remained on the fence, following the refusal of the opposition to concede defeat. Amidst the still sensitive political landscape, we still hold the view that the blend of compelling valuation story, together with positive macroeconomic picture, leaves scope for market recovery in the medium-to-long term. However, we guide investors to tread the cautious trading path in the short term.”

At Cowry Asset Management Limited, analyst believed that the coming weeks would be bullish. “We expect the Nigerian equities market to close in green territory as investors take advantage of the low prices amid positive corporate results and increased dividend pay-out.”