Stock market rebounds, indices up by N166 billion
After seven consecutive sessions of downward trend, the bulls, upstaged the bears on the equity sector of the Nigerian Stock Exchange (NSE), even as major highly capitalised stocks appreciated in price, causing market capitalisation to rise by N166billion.
Specifically, at the close of transactions yesterday, the All-share index to increase by 463.65 points or 1.1 per cent to 42,171.80 from 41,708.15 recorded on Tuesday.
Similarly, market capitalisation rose by N16 billion from N14.967trillion to N15.133trillion.
Analysts at Codros Capital Limited argued that expectations are high, and that “we expect appetite to remain strong, as investors continue to hunt bargains and take position ahead of Q4-17 earnings, amidst generally improving macroeconomic conditions.”
Also, the Chief Research Officer, InvestData Consulting, Ambrose Omordion, said: “We would like to reiterate that investors should go for value stocks as today trading confirm direction. However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.
“We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
“It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases know the cycles in order to manage your trading and investing risk,” he advised
About 25 stocks recorded price appreciation as Nestle topped the gainers’ chart with 25.00 kobo to close at N25.00 per share, while Beta Glass followed with 3.40 kobo to close at N72.10 per share. Zenith Bank added 1.50 kobo to close at N31.50 per share. Nigeria Breweries garnered 1.20 kobo to close at N129.00 per share. Flourmills gained 0.90 kobo to close at N32.40 per share.
However, Total Oil led others on the losers’ chart 1.00 kobo to close at N229.00 per share, while Forte Oil followed with 0.80 kobo to close at N45.00 per share. Okomu Oil lost 0.50 kobo to close at N72.00 per share. Dangote Cement depreciated by 0.30 kobo to close at N258.40 per share. National Salt Company of Nigeria shed 0.25 kobo to close at N20.75 per share.
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