Business

NSE All-share index inches 0.453% as bargain hunters take position

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7 years ago

June 12, 2018

Olu Emmanuel

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By Chioma Obinagwam

The Nigerian Stock Exchange (NSE) began trading on Monday on a positive note as its major measurement indicator, NSE All-Share index closed 175.09 or 0.453 per cent higher.

According to the Daily Official list of the Nigerian bourse for Monday, June 11, 2018, the NSE All-Share index inched from 38,669.23 basis points (bps) to 38,844.32 bps.

All-Share index a series of numbers which shows the changing average value of the share prices of all companies on a stock exchange, which is used as a measure of how well a market is performing.

This slight improvement could be attributed to the activities of bargain hunters on the NSE taking position in fundamentally sound stocks.

A bargain hunter is a person who looks for a place to buy something at a price that is cheaper than usual or discounted price.

Similarly, the Market Capitalisation of listed equities on the Exchange leaped marginally by N63.425 billion or 0.453 per cent to close at N14.071 trillion.

Also, Analysts at Afrinvest Limited, a wealth advisory firm with focus in West Africa, stated that discerning investors are taking taking advantage of the attractive entry share prices in the market.

“Last week’s gains was largely in line with expectations as positive performance was largely driven by bargain hunting in bellwethers following successive weeks and 11 consecutive days of losses,” the analysts stated.

“Hence, we believe the rebound in the market will be sustained in the coming week as investors continue to take advantage of existing attractive entry prices in fundamentally sound stocks,” they predicted.

Moreover, National Salt Company of Nigeria (NASCON) lead other share price gainers after adding N1.60 or 7.14 per cent to close at N24.

Diamond Bank increased by 10 kobo or 6.58 per cent as its shareholders warm up for Tuesday’s Annual General Meeting (AGM) even as Japaul Oil and Maritime Services sustained its rally, notching 2 kobo or 6.45 per cent.

On the laggards’ side, Berger Paints led other share price decliners shaving 45 kobo or 5 per cent from its N9 opening price to settle at N8.55.

BOC Gasses shed 22 kobo or 4.97 per cent even as Eterna shrinked by 31 kobo or 4.73 per cent.

A total of 30 equities gained on Monday even as 20 equities slipped to the laggards side.

Meanwhile, a total of 603.17 billion shares were traded in 3,832 deals.

Going by the prediction of Afrinvest analysts, the NSE is expected to consolidate on the gains it recorded Monday.