Goddy Egene
22 December 2011
Nigerian equities market Wednesday recorded an upward movement for the fourth day running as bargain hunters swooped on the market in search of low valuations.
The benchmark Nigerian Stock Exchange (NSE) All-Share Index appreciated by 1.48 per cent to close at 20,420.23 while market capitalisation added N93 billion to close at N6.455 trillion.
After a long period of bear run, the market witnessed a rebound last Friday and that positive trend has been maintained since then. The gain of 1.48 per cent recorded yesterday was the highest daily index growth since last August.
An analysis of the market performance indicated that the rally was majorly driven by the gains by equities in the banking sub-sector of the financial sector of the Exchange.
For instance, Zenith Bank Plc, Skye Bank Plc, Guaranty Trust Bank Plc, First Bank of Nigeria Plc, First City Monument Bank Plc and Ecobank Nigeria Plc rose by over three per cent apiece.
Market analysts said discerning investors who were still liquid were taking advantage of the current low valuations of some equities.
The Managing Director/Chief Executive Officer of UBA Trustees Limited, Mrs. Oluwatoyin Sanni had told THISDAY that the market was parading equities that could be picked up by investors at very favourable valuations.
Sanni therefore, advised investors to take advantage of the low prices of equities in the market.
“There are still viable opportunities both on the equities and fixed income sides. On the equities side, the mere fact that prices are at all-time low, and with benefit of hindsight and strong fundamentals, there are lot of intrinsic value in those equities that should be picked up right now at bargain prices. On the fixed income side, we also believe that there are big opportunities even right now to make good gain with minimal risk,” she said.
The bulls were comfortably in control of the market yesterday as 34 equities appreciated while 11 equities depreciated. Nestle Nigeria Plc led the price gainers with N21.20 to close at N445.66 per share. Seven-Up Bottling Company Plc trailed with a gain of N2.00 to close at N51.49 per share.
Nigerian Breweries Plc hit N100 per share after chalking up N1.81, just as Ashaka Cement Plc, Guaranty Trust Bank Plc, Zenith Bank Plc and First Bank of Nigeria Plc garnered N0.50, N0.47, N0.45 and N0.44 respectively.
Conversely, Nigerian-German Chemicals Plc led the price losers with N0.45 to close at N8.59 per share. Capital Hotel Plc trailed with a loss of N0.35, while SCOA Nigeria Plc and Eterna Oil Plc shed N0.29 and N0.15 in that order.
AllAfrica – All the Time