Stock investors defy political tension, turn bullish
By Peter Egwuatu
THE equity market returned to positive territory gaining 2.92 percent Week on Week, WoW, as investors ignored the risks associated with the forth coming general elections to buy stocks with strong fundamentals across the sectors.
However, Financial Vanguard gathered that the sustained investors rally is not unconnected to positive expectation of the 2018 corporate earnings.
Consequently, investment analysts that have been predicting continued bearish trend citing political uncertainties, have now switched to positive sentiments.
Analysts at Cowry Asset Management Limited, said: “This week, we expect the Nigerian equities market to be bullish as investors, with the significant naira votes witnessed in recent trading week, may have decided to take position in the equities market ahead of the Presidential election.”
Corroborating, analysts at Afrinvest Research said, “Following the bullish performance last week, we expect sell pressures in subsequent sessions leading to the elections.”
But, analysts at a Lagos based investment firm, Cordros Capital said: “Looking ahead, we continue to guide investors to trade cautiously amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we believe positive macroeconomic fundamentals will drive recovery post-election.”
Positive market performance in the market has been driven by bargain hunters with increased activity from both local and foreign players.
Analysts at Nairametrics say they “expect the positive trend to persist amid sustained interest on select stocks even as investors position to take advantage of a possible postelection rally.”
This week was a strongly positive one on the Nigerian Stock Exchange, NSE, as the All-Share Index gained 2.92 percent. The All Share Index opened at 30,636.36 basis points and closed at 31,529.92 basis points up 893.56 basis points. 53 equities appreciated in price during the week, higher than 16 in the previous week. 21 equities depreciated in price, lower than 50 equities of the previous week, while 94 equities remained unchanged, lower than 102 equities recorded in the preceding week.
Stock Watch -Top Gainers
Regency Alliance Insurance Plc
Regency Alliance Insurance Plc was the best performing stock last week, appreciating by 19.05 percent. The stock opened at N0.21 and closed at N0.25, up N0.04. Year to date, the stock is up 19.05 percent.
During the week, the company had given notice of a board meeting where its 2018 full year results and a possible dividend and bonus will be discussed.
Dangote Flour Mills
Dangote Flour Mills Plc was the second best performing stock last week, gaining 18 percent in four out of five sessions. The stock gained eight percent in a single trading last Friday to close at N6.85, trading at its highest price since March 2018.
Dangote Flour Mills opened the week at N5.80 and closed at N6.85, up N1.05 or 18.1 percent. Year-to-Date.
Guaranty Trust Bank Plc
Guaranty Trust Bank Plc appreciated by 14.69 percent during the week. The stock opened at N33.70 and closed at N38.65, up N4.95. Year to date, the stock is up 12.19 percent.
McNichols Plc opened the week at N0.36 and closed at N0.41, up N0.05 or 13.89 percent. Year to date, the stock is down 12.77 percent.
AIICO Insurance Plc
AIICO Insurance Plc appreciated by 12.50 percent this week. The stock opened at N0.64 and closed at N0.72, up N0.08. Year to date, the stock is up 14.29 percent.
University Press Plc
University Press Plc also gained 12.50 percent this week. The stock opened at N2.08 and closed at N2.34, up N0.26. Year to date, the stock is up 7.34 percent.
ABC Transport Plc
ABC Transport Plc maintains a top 10 spot for the second week in a row. The stock gained 11.11 percent, opening at N0.36 and closing at N0.40, up N0.04. Year to date, the stock is up 37.93 percent.
Cutix Plc gained 11.11 percent last week. The stock opened at N1.80 and closed at N2, up N0.20. Year to date, the stock is up 21.95 percent.
Eterna Plc opened the week at N4.25 and closed at N4.70, up N0.45 or 10.59 percent. Year to date, the stock is flat.
Beta Glass Plc
Beta Glass Plc rounds up the top 10 gainers for the week. The stock opened at N60 and closed at N66, up N6 or 10 percent. Year to date, the stock is down 3.37 percent.