Nigeria’s listed stocks gained N60billion on Thursday as investors saw opportunity to re-enter the market and buy value counters which were trading at record lows following agitations against police brutality.
Top on the list of stocks that attracted investors is MTNN Plc which recorded price increase from N138 to N140, after adding N2 or 1.45percent. Also, Stanbic IBTC Holdings Plc followed after its share price increased from N43 to N44, adding N1 or 2.33percent.
Likewise, UACN Plc moved up from N6.6 to N7.15, adding 55kobo or 8.33 percent; Lafarge Africa Plc increased from N17.3 to N17.65, up by 35kobo or 2.02 percent, while Dangote Sugar Refinery Plc rose from N13.5 to N13.8, adding 30kobo or 2.22 percent.
Equities market trading data for October 22 showed the positive return year-to-date (YtD) stood at +6.41 percent.
In 3,375 deals, investors exchanged 311,333,143 units valued at N4.691billion. GSK Plc, Chemical and Allied Products Plc, International Breweries Plc, Zenith Bank Plc and Access Bank Plc were actively traded stocks on the Bourse.
While taking a cue from the market’s bearish sectoral performances, coupled with the negative market breadth, Lagos-based Vetiva research analysts who had expected to see the market sustain the bearish pattern on Thursday, said they expect a rapid and coordinated response from the government to allay the fears of social unrest, “thereby dousing some negative sentiments.”
The Nigerian Stock Exchange on Thursday announced the postponement of all events scheduled for this week in view of the social unrest experienced across the nation. As a result, a new date will be communicated in due course for the following events: Ikeja Hotels Plc Closing Gong Ceremony; FinTech Webinar; and Market Data Workshop 2020
“We thank those who have shown interest and registered for these events. Please be assured that your registration details will be automatically transferred to the new date of the relevant event. We truly regret any inconvenience this date change may have caused and look forward to your participation”, the NSE said in a recent statement.
“The Nigerian Stock Exchange All-Share Index (NSE-ASI) ended in the red territory as market participants priced-in the heightened risk around the fatal outcome of what started as a peaceful protest in Nigeria”, United Capital research analysts noted in their recent note.
“Clearly, the jitters about the ongoing standoff between protesters and the government portends a negative outlook for the market in the interim and may reverse the expected post-COVID-19 recovery in the economy. Also, this may diminish the prospect of expected earnings improvement in fourth quarter (Q4) 2020.
“Yet, we observe that panic sales provide an opportunity for new or existing investors to enter/re-enter the market at new lows amid record low yields environment and pent-up liquidity in the system. As such, we maintain an optimistic outlook for Nigerian stocks”, United Capital analysts further noted in the report titled “Nigerian equity market Outlook: COVID out, riots in?”.