The low prices of fundamentally-justified stocks are becoming re-entry points for investors seeking value at the Nigerian Stock Exchange (NSE).
The domestic market continued to enjoy positive patronage on Wednesday April 8, gaining +0.71 percent as investors took position in a number of value counters seen to be trading at their record lows.
While the Coronavirus Pandemic continues to rattle global financial and commodities market, equities investors should not overrule the possibility of profit taking on recent gains.
Lafarge Africa Plc recorded the highest gains on the Bourse as stock buyers position ahead of its proposed dividend of N1 per share.
The share price of the company moved from day open low of N10.75 to N11.8, adding N1.05 or 9.77percent, while that of Dangote Sugar Refinery Plc followed after moving from N8.9 to N9.75, adding 85kobo or 9.55percent.
Market watchers anticipate some profit taking on recent gains on Thursday, despite that most stocks remain fundamentally attractive.
On the losers league, Ardova Plc recorded the highest decline after its share price moved from day open high of N12.45 to N11.25, losing N1.2 or 9.64 percent followed by GSK which decreased from N4.8 to N4.35, losing 45kobo or 9.38percent.
At close of remote trading session on Wednesday, the value of listed stocks rose from preceding day low of N10.905trillion N10.982trillion, adding N77billion as buy side outweighed the sell side.
Likewise, the Nigerian Stock Exchange (NSE) All Share Index (ASI) increased from 20,925.19 points recorded the preceding trading day to 21,073.26 points.
Year-to-date (ytd), the market has yielded negative return of -21.49percent, while this month of April, the market has lost 1.07percent of its value.
In 4,660 deals, equity dealers exchanged 346,409,715 units valued at N5.216billion. Banking stocks were actively traded, led by GTBank, FBN Holdings, Zenith Bank, and Fidelity Bank.
Iheanyi Nwachukwu
