Gaining Streak Sustained into 6th Consecutive Session

The gaining streak in the local bourse was sustained into Thursday’s trading session as buying interest in DANGCEM (+1.1%), NIGERIAN BREWERIES (+1.0%) and ETI (+2.2%) drove the All Share Index 0.4% northwards to 30,583.21 points. As a result, YTD loss moderated to -2.7% while market capitalization increased by N45.7bn to N11.4tn. Activity level also remained mixed as volume traded declined 24.4% to 231.2m units while value traded advanced 55.2% to N11.4bn. DIAMOND (59.6m units), GUARANTY (45.6m units) and ZENITH (19.8m units) were the most traded stocks by volume while GUARANTY (N1.5bn), NIGERIAN BREWERIES (N465.4m) and ZENITH (N427.6m) led by value.

Bullish Sector Performance
Across sectors, performance was equally bullish as 4 of 5 indices closed in the green. Price appreciation in DANGCEM (+1.1%), CCNN (+4.6%) and FORTE (+2.6%) drove the Industrial and Oil & Gas indices 2.0% and 0.5% higher respectively. In the same vein, the Consumer Goods and Insurance indices advanced, up 0.3% and 0.1% respectively due to gains in NIGERIAN BREWERIES (+1.0%), DANGFLOUR (+0.8%), NEM (+9.7%) and SOVRENINS (+9.1%). On the flip side, the Banking index was the lone loser, down 0.3% due to sell pressures in ZENITH (-1.1%), GUARANTY (-0.6%) and ACCESS (-0.9%).

Market Breadth Remains Strong
Market breadth (advance/decline ratio), a measure of investor sentiment remained strong at 1.5x as 23 stocks appreciated relative to 15 that declined. The top performers were NEIMETH (+9.8%), NEM (+9.7%) and SOVRENINS (+9.1%) while ETRANZACT (-9.9%), RESORTSAL (-9.7%) and CORNERST (-9.1%) led laggards. We maintain a cautiously optimistic outlook for the market in the near term and recommend that investors position largely in value stocks.