NSE: Law Union, United Capital emerge best performing stocks in February

Law Union & Rock Insurance and United Capital (UCAP) have emerged the best performing stocks in percentage on the Nigerian Stock Exchange (NSE) for February.

Statistics obtained by News Agency of Nigeria (NAN) from the exchange indicated that Law Union & Rock rose by 32.35 per cent, while UCAP increased by 21.43 per cent.

Livestock Feeds trailed with 12.50 per cent, while Union Bank of Nigeria grew by 10.17 per cent.

Flour Mills during the period increased by 4.02 per cent, while Julius Berger appreciated by 1.13 per cent.

Conversely, FBN Holdings was the worst performing stock during the period under review, dropping by 33.33 per cent.

Chams came second with a loss of 31.43 per cent, while UACN lost 29.86 per cent.

ETI had 29.41 per cent, Redstar Express 26.97 per cent and Linkage Assurance dipped 26.32 per cent.

Consequently, the All-Share Index which opened at 28,843.53 dropped by 2,627.07 or 9.11 per cent to close at 26,216.46 in February.

Also, the market capitalisation declined by N1.2 trillion or 8.07 per cent to close at N13.66 trillion from N14.86 trillion posted in January.

The difference in the index and market capitalisation was due to the listing of additional shares of Abbey building and AIICO Insurance during the month.

Commenting on February market performance, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that the market breadth for the month was negative and weak with six gainers and 67 losers.

Omordion said that the downturn defied positive factors such as the prevailing low rates and declining yields in the money and fixed income markets.

He attributed dwindling investor confidence in the economy and market to rising insecurity, inflation and lack of liquidity in the equity segment of the financial market.

Omordion added that the coronavirus outbreak induced selloffs in developed markets with a confirmed case in Nigeria contributed to the negative trend.

He, however, urged investors not to panic but should go for equities with intrinsic value.

“We advise investors to allow numbers to guide their decisions while repositioning for the year trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

“The current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation. (NAN)