The Nigerian equities market yesterday closed on a positive note, extending the previous positive sentiment to six consecutive trading day, with a gain of 0.07 per cent, following value appreciation on Dangote Cement and 17 other stocks.
The All Share Index (ASI) increased by 14.90 absolute points, representing a growth of 0.07 per cent to close at 22,554.84 points. Similarly, the market capitalisation gained N8 billion to close at N11.755 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, MTN Nigeria, Dangote Cement, Nigerian Breweries and Conoil.
United Capital Plc in its report on ‘Covid-19 and Investments: Building a recession proof portfolio’ stated that “In the current economic environment, it is important to maintain a medium to long-term perspective when investing.
“With stock prices at record lows, investing in fundamentally sound stocks with a demonstrated history of consistent revenue growth, cost efficiency, stable profit and consistent dividend payment is essential.”
It stated further that investing in sectors that are likely to benefit from the pandemic (Healthcare, Telecoms among others), Banking stocks due to liquidity and defensive stocks (Utilities, Consumer Essentials) can help returns on a portfolio, by creating significant upsides, saying that recessions are associated with increasing inflation and higher bond yields. Hence, buying both dollar and naira bond instruments can help too.
It noted that the most important point is to maintain a diversified portfolio, spreading risk across diverse sectors and asset classes.
However, market breath closed negative, recording 18 gainers and 20 losers. Nestle Nigeria recorded the highest price gain of 10 per cent, to close at N913.20, per share. Nigerian Breweries followed with a gain 9.89 per cent to close at N29.45, while Conoil appreciated by 9.69 per cent to close at N15.85, per share.
Cornerstone Insurance went up by 9.26 per cent to close at 59 kobo, while Champion Breweries and Neimeth International Pharmaceuticals appreciated by 9.09 per cent each, to close at 96 kobo and 60 kobo, respectively, per share. On the other hand, Access Bank and Sterling Bank led the losers’ chart by 10 per cent each, to close at N6.30 and N1.35, respectively, while Nigerian Aviation Handling Company (NAHCO) followed with a decline of 9.79 per cent to close at N2.12, per share.
Zenith Bank shed 9.75 per cent to close at N14.35, while John Holt depreciated by 8.93 per cent to close at 51 kobo, respectively.
The total volume traded increased by 16.13 per cent to 379.11 million shares, worth N4.327 billion, and traded in 5,985 deals. Transactions in the shares of Zenith Bank topped the activity chart with 84.563 million shares valued at N1.25 billion. FBN Holdings followed with 65.669 million shares worth N307.854 million, while EkoCorp Plc traded 58.001 million shares valued at N348.004 million.
United Bank for Africa (UBA) traded 29.173 million shares valued at N176.14 million, while Guaranty Trust Bank transacted 26.284 million shares worth N542.708 million.