Nestle Nigeria Plc dragged the Nigeria Stock Exchange (NSE) All Share Index (ASI) to green territory on Wednesday after consecutive days of loss.
Equity investors gained N21.8 billion with the ASI appreciating by 0.17% to close at 24,972.89 from 24,930.88 on Wednesday. The Market Capitalization rose to N13.027 from N13.005 on Tuesday.
The share price of Nestle Nigeria Plc advanced by 10.00% (N99.5) which is the highest possible margin of price appreciation on the floor of the exchange. It closed at N1,094.50 on Wednesday from N995.00 on Tuesday.
265,964,169 units of shares worth N2,708,736,566.85 were traded in 3,564 deals on Wednesday.
The shares of Guaranty Trust Bank Plc, was the most traded by volume and value. 43,674,620 units of shares worth N1,026,994,423.00 were traded in 265 deals.
Three Indices under our watch declined. Only Consumer Goods Index grew by 4.19% to close at 441.85 thanks to 10.00% rise in the share price of Nestle Nigeria Plc.
Oil and Gas Index suffered the heaviest slump of 4.37% to close at 207.85, courtesy of 9.99% plunge in the share price of Seplat Petroleum Dev. Co Ltd.
Insurance Index, dipped by 2.95% to close at 130.15 due to 9.00% and 8.25% drop in the share prices of Axamansard Insurance Plc and AIICO Insurance Plc respectively.
Read more; Stock stories – AIICO Insurance Plc
Banking Index declined by 0.79% to close at 291.58 while Industrial Goods Index remained unchanged at 1,188.01
Only 10 equities advanced in prices while 24 declined in prices.
Top five gainers by percentage are Nestle Nigeria Plc (10.00%), Cadbury Nigeria PLc (6.67%), Flour Mills Nig. Plc (4.35%), Wapic Assurance Plc (3.03%) and Transnational Corp. of Nig. Plc (2.78%).
Top five decliners are by percentage are; Seplat Petroleum Dev. Co Ltd.(9.99%), Neimeth Int. Pharm. Plc (9.57%), NPF Micro Finance Bank Plc (9.04%), Axamansard Insurance Plc (9.00%), and AIICO Insurance Plc (8.25%).
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The market would have closed in red for the third time this week, except for the 10.00% rise in the share price of Nestle Nigeria Plc. The number of stocks that declined is more than twice the number of stocks that advanced.
Thus, the rise in the ASI does not reflect the true nature of the equity market on Wednesday.
Analysts’ view at Investogist; the impact of Covid-19 on the listed companies is expected to be reflect on the half year result. It is our view that Investors will continue to trade with caution as the second quarter of the year gradually draws to an end. We expect the depressed mood in the market to continue in the short and medium term.
Written by;
Ifunanya Ikueze
