Market Opens Week Bullish

In Monday’s trading session, the local bourse advanced 51bps to settle at 32,201.9 points on account of buy interests in market bellwethers – NIGERIAN BREWERIES (+2.7%), NESTLE (+1.4%) and FBNH (+2.0%). As a result, market capitalisation rose by N59.9bn to N11.8tn while YTD loss improved to – 15.7%. However, activity level weakened as volume and value traded shed 9.8% and 35.6% to 148.1m units and N1.8bn respectively. The top traded stocks by volume were OANDO (30.3m units), DIAMOND (16.4m units) and UBA (12.9m units) while NESTLE (N408.8m), GUARANTY (N338.6bn) and OANDO (N154.2bn) 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 1.4% following bargain hunting in NIGERIAN BREWERIES (+2.7%), NESTLE (+1.4%) and FLOURMILL (+4.7%) while the Insurance and Banking indices trailed, appreciating by 0.8% and 0.4% respectively as a result of gains in CONTINSURE (+6.4 %), PRESTIGE (+8.9%), FBNH (+2.0%) and ETI (+1.6%). On the flip side, the Oil & Gas index fell by 0.7% on the back of sell offs in FORTE (-7.8%) while the Industrial Goods index closed flat despite gains in FIRSTALU (+3.2%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) significantly improved to 5.2x from 0.7x recorded last Friday as 26 stocks appreciated against 5 decliners. GLAXOSMITH (+10.0%), UACPROP (+9.7%) and NPFMCRFB (+9.6%) were the best performing stocks while the worst performing stocks were UNIONDAC (-8.0%), MBENEFIT (-8.0%) and FORTE (-8.0%). Although today's bullish performance was largely on account of investor bargain hunting as well as a noticeable stronger investor sentiment, we expect performance this week to follow an undulating trend while maintaining our bearish outlook on the market.