NGX: How Bargain Hunting In 28 Stocks Limits Market Gain To N1bn

Motolani Oseni

Due to investors’ bargain hunting in Flour Mills of Nigeria, MTN Nigeria, BUA Foods and 25 other stocks, the equities market of the Nigerian Exchange Limited (NGX) on Tuesday recorded a marginal gain of N1 billion.

At the close of yesterday trading session, the overall market capitalisation value gained N1 billion to close at N25.362 trillion, while the All-Share Index (ASI) appreciated by 1.54 absolute points, representing an increase of 0.003 per cent to close at 47,064.82 points.

The market gain was driven by price appreciation in large and medium capitalised stocks amongst which are; Flour Mills of Nigeria, NASCON Allied Industries (NASCON), MTN Nigeria Communications (MTNN), BUA Foods and NEM Insurance.

GTI Securities Limited said that “The two days of negative closes were reversed today as bargain hunters return to the market to drive buying pressure. We expect positive sentiments to persist as investors continue to take positions on stocks in anticipation of financial disclosures.”

Market sentiment, as measured by market breadth, was positive as 28 stocks gained, relative to 21 losers. Learn Africa recorded the highest price gain of 9.70 per cent to close at N1.81, while Morison Industries followed with a gain of 9.55 per cent to close at N2.18, per share.

R.T. Briscoe Nigeria and Veritas Kapital Assurance rose by 9.52 per cent each to close at 46 kobo and 23 kobo, respectively, while NASCON appreciated by 9.43 per cent to close at N14.50, per share. On the other hand, Berger Paints Nigeria led the losers’ chart by 9.58 per cent, to close at N7.55, per share. Consolidated Hallmark Insurance followed with a decline of 4.62 per cent to close at 62 kobo, while Jaiz Bank declined by 4.29 per cent to close at 67 kobo, per share.

International Breweries shed 2.86 per cent to close at N5.10, while Ecobank Transnational Incorporated (ETI) depreciated by 2.80 per cent to close at N12.15, per share.

However, the total volume of trades declined by 18.9 per cent to 274.207 million units, valued at N3.817 billion, and exchanged in 5,331 deals. Transactions in the shares of Access Bank topped the activity chart with 55.398 million shares valued at N576.538 billion. Guinness Nigeria followed with 16.710 million shares worth N1.163 billion, while Japaul Gold and Ventures traded 14.014 million shares valued at N5.105 million.

Sterling Bank traded 13.256 million shares valued at N22.559 million, while eTranzact International transacted 13.075 million shares worth N26.150 million.