Nigerian Stocks Halt Losses as Investors Mull Earning Season, Airtel Listing

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The intermittent losses recorded at the Equities segment of the Nigerian Stock Exchange (NSE) came to a halt on Thursday, June 27, when trading session recorded a gain.

The NSE All Share Index (ASI) climbed higher by 0.47% to settle at 29,749.35 points while year-to-date loss moderated to -5.3%.

Thus, investors gained N61.9billion as market capitalisation increased to N13.1trillion.

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The positive performance can be attributed to investors positioning ahead of half year earning season and Airtel’s proposed initial public offering (IPO) which is billed to propel positive sentiments on the market.

Gains in bellwether stocks such as NESTLE (+3.7%), SEPLAT (+6.0%) and DANGCEM (+0.6%), aided market recovery even though  volume traded fell 23.6% to 301.1m units while value traded surged to N5.0bn.

TRANSCORP (45.9m units), GUARANTY (31.9m units) and ACCESS (31.8m units) were the top traded stocks by volume while GUARANTY (N978.9m), NESTLE (N778.6m) and DANGCEM (N648.1m) led by value.

Performance across sectors was positive as 5 of 6 major indices closed in the green. The Industrial Goods index led with a 2.6% gain following price appreciation in CCNN (+10.0%) and WAPCO (+2.1%).

The Oil & Gas index rose 1.8% on account of an uptick in SEPLAT (+6.0%). Similarly, gains in NESTLE (+3.7%), INTBREW (+9.6%) and UNILEVER (+0.2%) drove the Consumer Goods index 0.7% northwards.

 The AFRI-ICT and Insurance indices gained 0.4% and 0.3% respectively. Conversely, the Banking index shed 0.3% as a result of selloffs in STANBIC (-1.3%), ZENITH (-0.8%%) and STERLING (-6.4%).

Investor sentiment as measured by market breadth (advance/decline ratio) climbed higher to 1.4x against 0.9x recorded previous session, with 26 stocks advancing against 18 decliners.

Leading the gainers were CCNN (+10.0%), BOCGAS (+9.8%) and INTBREW (+9.6%) while FORTE (-9.9%), BERGER (-9.8%) and NIGERIAN BREWERIES (-7.3%) were the worst performers.