Nigeria: Analysts attribute Stock Market gains to last minute buy

 Hours to close of Stock Market for the year 2015, analysts have described N352 billion gains recorded at the close of trading on the Nigerian Stock Exchange (NSE) on Wednesday to massive sell-off aiming at meeting up with the demand of the New Year.

Capital Market observers recalled that the trend is becoming a tradition for the portfolio managers to warehouse stocks, especially those selling below par, at the close of the year. This was with a motive to sell at a time when the demands for those stocks.

Specifically, the lead indicators of Nigerian equities market segment rose by 3.79 per cent bringing the All Share Index 1,014.59 points higher to close at 27,777.83 points when compared with 26,763.24 points on Tuesday.

The Market Capitalization added N351.5 billion to close at N9.6 trillion from the opening value of N9.201 trillion.

Head of Research, Elixir Investment Partners, Mr. Abiodun Keripe, told our correspondent that the market was buoyed by substantial increases in all Sectoral indices except the Banking Index, which is the second highest since the emergence of President Muhammadu Buhari administration.

Keripe, also attributed the rise in the benchmark indices to the gains recorded in the share prices of Dangote Cement Plc, Nigerian Breweries Plc and FBN Holdings.

He maintained that the Stock Market has lost significantly in the last six months; hence there was the need for investors who are planning for 2016 to embark on massive sell off to meet their need for the period and beyond.

In the same vein, Mr. Ayo Buari, Managing Director/Chief Executive Officer, Trust Yield Investment and securities Limited, added that both the market and players were waiting to see the Federal Government’s policy direction for the New Year.

On this note, Buari added that with the presentation of the national budget for 2016, investors now have clear view of what is likely to come during the year.

At the close of trading for the day, with 33 stock recorded value addition as against nine others on the losers table.

Top three gainers were Dangote Cement, with an increase of 8.59 per cent or N13.05 to close at N164.95 per share followed by Nigeria Breweries Plc., which added 7.83 per cent or N9.00 to close at N124 per share, while FBN Holdings Plc., gained 7.61 per cent or 36 kobo to close at N5.09 per share.

On the flip side, E-tranzact Plc topped the losers chart with a decline of 5.00 per cent or 16 kobo to close at N3.04 per share, followed by Nigerian Aviation Handling Company Plc., which depreciated by 4.99 per cent or 18 kobo to close at N3.43 per share, while Transcorp Hotels Plc., dropped 4.92 per cent or 30 kobo to close at N5.80 per share.

In all, investors traded N1.4 billion shares worth N1.95 billion in 2,559 deals.