Stock market rises after presidential election

The nation’s stock market rose slightly on Monday as investors awaited the final results of the presidential and National Assembly elections.

Investors gained N69bn at the end of trading as the market capitalisation of equities listed on the floor of the NSE increased from N12.125tn on Friday to N12.194tn on Monday.

Traders said the conclusion of presidential polls over the weekend lifted a layer of political uncertainty in the country.

Stocks rose by 0.43 per cent as the All Share Index closed at 32,655 basis points, a 185.60 points higher figure than that recorded on Friday.

Vetiva Capital Management Limited, in its weekly market report on Friday, said, “Barring any negative surprises at the polls, we anticipate a positive start to this week’s trading as investors price in improved certainty upon conclusion of the general elections.”

The head of the African Union observer mission said on Monday that the election had taken place in a generally peaceful environment. But the United States observer mission said the week-long delay had damaged public confidence in the process and probably reduced voter turnout, according to Reuters.

The Head, Africa Strategy, Standard Chartered Bank, Samir Gadio, told Reuters that the market opened on a constructive note as evidenced by a receiving bias in USD/NGN forwards, supportive local bond performance and moderate gains in Eurobonds.

He said, “The risk-on global backdrop, higher oil prices and prospects of larger portfolio inflows after the election are probably driving this positive market performance.”

Stocks witnessed mild bargain hunting as the year-to-date return increased to four per cent.

Activity level on Monday was, however, mixed as volume traded decreased by 0.4 per cent to 219.7 million units while value traded increased by 147.7 per cent to N5.5bn.

The top traded stocks by volume were Nigerian Breweries Plc (42.7 million units), Diamond Bank Plc (30.8 million units) and Access Bank Plc (20.7 million units), while the top traded stocks by value were Nigerian Breweries (N3.6bn), Guaranty Trust Bank Plc (N733.9m) and Zenith Bank Plc (N337m).

Performance across sectors was bullish as all indices closed on a positive note.

The consumer goods index led gainers, up by 1.3 per cent on the back of buying interest in Nigerian Breweries and Dangote Flour Mills Plc.

The insurance and banking indices appreciated by 1.1 per cent and 0.8 per cent due to gains in NEM Insurance Plc, Sovereign Trust Insurance Plc, Zenith Bank and United Bank for Africa Plc.

Similarly, the oil and gas index advanced by 0.1 per cent as 11 Plc and Oando Plc closed in the green.

The industrial goods index closed flat with a bullish bias as investors took advantage of bargain opportunities in Dangote Cement Plc towards the end of today’s session.

Investor sentiment as measured by the market breadth (advance/decline ratio) strengthened to 3.1x from 1.2x recorded on Friday as 25 stocks advanced against eight decliners.

The top five gainers were Dangote Flour Mills, Associated Bus Company Plc, Veritas Kapital Assurance Plc, Niger Insurance Plc and Royal Exchange Plc, which gained 9.95 per cent, 9.62 per cent, 9.52 per cent, 9.09 per cent and 9.90 per cent, respectively.

The top five losers were Union Diagnostic and Clinical Services Plc, Total Plc, Cutix Plc, Flour Mills Nigeria Plc and Access Bank Plc, whose respective share prices shed 6.45 per cent, 2.56 per cent, 1.58 per cent, 0.99 per cent and 0.78 per cent.

Analysts at Afrinvest Securities Limited said, “We observed cautious trading in today’s trading session as investors await the results of the 2019 presidential elections.”

“We expect market direction this week to be largely determined by the outcome of the election.”


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