NSE LIVE! Equities hit 37-month high as return rises to 43.24%

It is the best in more than three years for the Nigerian investors. Nigerian equities on Tuesday rallied to a 37-month high as average year-to-date return at the equities market hit 43.24 per cent.

With nearly three advancers to every decliner, benchmark indices at the Nigerian Stock Exchange (NSE) indicated an average day-on-day gain of 1.37 per cent, equivalent to net capital gain of N181 billion.

The All Share Index (ASI)-the value-based common index that tracks share prices at the NSE rose from its opening index of 37,974.58 points to close at 38,494.43 points. Aggregate market value of all quoted equities rallied from its opening value of N13.225 trillion to close at N13.406 trillion.

At 38,494.43 points, the main benchmark index closed on Tuesday on its best performance since October 2014. Market analysts attributed the sustained rally to increasing positioning by investors and portfolio managers ahead of the 2017 year-end and the next earnings season expected to start in the first quarter of 2018.

“The renewed bargain hunting and increased activities are indications of the gradual take-off of the anticipated year-end rally,”FSDH Securities stated.

Most sectoral indices also closed positive. The NSE Consumer Good Index rose by 1.7 per cent. The NSE Banking Index appreciated by 1.3 per cent while the NSE Industrial Goods Index rose by 1.1 per cent. However, the NSE Insurance Index declined by 0.6 per cent while the NSE Oil and Gas Index dipped by 0.4 per cent.

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High-cap stocks led the rally. Nigerian Breweries-NSE’s second most capitalised stock led the advancers with a gain of N4.50 to close at N138. Dangote Cement-the most capitalised quoted company, followed with a gain of N4.20 to close at N250. Unilever Nigeria rose by N1.30 to close at N42.95. PZ Cussons Nigeria appreciated by N1.07 to close at N22.90 while Cadbury Nigeria added N1.05 to close at N15.30 per share.

On the downside, Forte Oil led the decliners with a drop of N1.76 to close at N43.23. Stanbic IBTC Holdings followed with a loss of 55 kobo to close at N42. Flour Mills of Nigeria dropped by 40 kobo to close at N33.10. International Breweries lost 24 kobo to close N59.76 while Chellarams and Nascon Allied Industries lost 16 kobo to to close at N3.08 and N15.74 respectively.

Total turnover stood at 522.4 million shares valued at N7.5 billion. The three most active stocks were Custodian and Allied, with a turnover of 90.14 million shares, Guaranty Trust Bank, 57.04 million shares and Fidelity Bank, which recorded turnover of 53 million shares.

“While we maintain a positive near-term outlook for market due to year-end portfolio re-balancing by portfolio managers, we do not rule out profit-taking in tomorrow’s session by traders,” Afrinvest Securities stated.

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