Stock market returns to positive territory as bears retreat

The Nigerian Stock Exchange returned to positive territory in today’s trading session. The All Share Index closed at 32,453.69 basis points, up 0.12% Year to date, the index is up 3.26%

Livestock Feeds Plc gained 10% to close at N0.66. ABC Transport Plc also gained 10% to close at N0.44. Unity Bank Plc rounds up the top three gainers appreciating by 9.62% to close at N1.14.

On the flip side, Union Bank Plc was the worst performing stock today. The stock shed 8.03% to close at N6.30. Oando Plc declined by 5.17% to close at N5.50. Dangote Flour Plc rounds up the top three losers for today. The stock shed 4.57% to close at N8.35.

Diamond Bank Plc was the most actively traded stock today. 97.1 million shares valued at N233 million were traded in 104 deals. Transcorp Plc was next with 41.1 million shares valued at N64.1 million traded in 248 deals. Zenith Bank Plc rounds up the top three most actively traded stocks 40.2 million shares valued at N997 million were traded in 449 deals.

Analysts attributed the drop in indices to profit taking by investors taking on the Exchange, saying the trend would be sustained to enable investors leverage the moderate appreciation recorded in the last few days to recoup their investment.

Specifically, analyst from Afrinvest said: “We expect to see sustained profit taking in previous advancers in the last two sessions before the elections.”

Similarly, Codros Capital said: “Our outlook for equities in the near-to-medium term remains conservative, and we guide investors to trade cautiously, amidst absence of a near term catalyst and political jitters ahead of the upcoming 2019 elections.

“However, macroeconomic fundamentals remain stable, evident in the release of the Q4-18 GDP figure (2.38% y/y), and remain supportive of recovery in the long term.”