In Thursday’s trading session, the local bourse advanced by 44bps on account of buy interests in market bellwethers – NIGERIAN BREWERIES (+5.0%), DANGCEM (+0.3%) and NESTLE (+0.7%). Consequently, market capitalisation rose by N51.6bn to N11.9tn while YTD loss improved to –14.9%. However, activity level was mixed as volume traded shed 8.2% to 349.3m units while value traded rose 57.3% to N3.7bn. The top traded stocks by volume were FCMB (180.3m units), ZENITH (24.5m units) and GUARANTY (23.8m units) while DANGCEM (N939.6m), GUARANTY (N869.9bn) and ZENITH (N589.0bn) were the top traded stocks by value.
Bullish Sector Performance
Performance across sectors was largely bullish as 3 of 5 indices under our coverage trended northwards. The Consumer Goods index advanced the most, up 1.6%, following bargain hunting in NIGERIAN BREWERIES (+5.0%), NESTLE (+0.7%) and UNILEVER (+1.1%) while the Oil & Gas and Insurance indices trailed, appreciating by 0.7% and 0.2% respectively as a result of gains in TOTAL (+8.2%), LASACO (+7.1%) and LAWUNION (+3.4%). On the flip side, the Industrial Goods and Banking indices fell by 0.7% and 0.3% respectively on the back of sell-offs in WAPCO (-0.5%), ZENITH (-0.8%) and UBN (-2.0%).
Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.0x from 1.1x recorded yesterday as 19 stocks appreciated against 19 decliners. JAIZBNK (+10.0%), ROYALEX (+10.0%) and TOTAL (+8.2%) were the best performing stocks while the worst performing stocks were BETAGLAS (-10.0%%), AGLEVENT (-10.0%) and CUTIX (-9.8%). In line with our expectation, the market rebounded today, we however maintain a bearish stance in the near term.