Nigeria’s stock market records first positive close in 2019
… gain driven by GTB, Dangote, Zenith
The Nigerian stock market has recorded its first positive close this year driven by gains in Guaranty Trust Bank, Dangote Cement and Zenith Bank as investors saw opportunities in cheap valuations.
The All-share Index (ASI) of the Nigerian Stock Exchange (NSE) rose by 0.62 percent to close at 29,517.73 points, halting the market’s six-day losing streak. Yesterday’s gains could be “attributed to bargain hunting on the backdrop of cheap valuations of stocks with sound fundamentals,” said Gbolahan Ologunro, a Research Analyst at CSL Stockbrokers. Investors took positions these stocks ahead of in full-year financial declaration “which we expect to be impressive’’ despite political uncertainties which becloud next month’s general elections, Ologunro.
Guaranty Trust Bank was the highest contributor to today’s gain, rising by 6.07 percent to close at N33.20. Dangote cement trailed with 0.88 percent price gain to close at N171.50, while Zenith bank grew by 2.86 percent to close at N21.60.
Investors gained N68 billion as market capitalisation of listed equities, which opened at N10.94 trillion, rose to N11.01 trillion after the close of business at the Lagos burse, moderating the year-to-date loss of ASI to 6.09 percent.
“We have seen a drop of over 6 percent in the market this year, which opened up an opportunity for people who are looking for short capital gain opportunity,” Johnson Chukwu, CEO, Cowry Asset Management Limited said.
The market had plunged to a 19-month low Tuesday and recorded 2.33 percent decline Wednesday, it biggest daily loss in 11 weeks as investors sold on elections worries. “The decline in the stock market is expected, with the elections fast approaching,” said Aluko Paul, a Research Analyst at MBC Securities.
Law Union and Rock Insurance Plc gained the most today. The stock rose 10 percent to close at 55 kobo. Julius Berger Nigeria Plc rallied to a six-month high, gaining 9.86 percent to close at N28.40, while Eterna plc garnered 8.86 percent to close at N4.30.