Market Rebounds after Days of Negativity

The domestic bourse rebounded in today’s session following buying interest in DANGCEM as the NSE All Share Index (ASI) inched 17bps higher to close at 40,499.04 points on Tuesday. Ex-DANGCEM, the ASI would have closed 25bps lower. Consequently, investors gained N25.2bn in value as market capitalization rose to N14.6tn while YTD return improved to 5.9%. Today’s bullish performance is mainly attributable to buying interest in DANGCEM (+1.2%) as well as INTBREW (+4.8%) and ETI (+2.9%). Activity level was mixed as volume traded rose 35.3% to 388.3m units while value traded fell 14.3% to N4.2bn. The top traded stocks for the day by volume were SOVRENINS (82.5m), ZENITH (50.0m) and SKYE (37.5m) while the top traded stocks by value were FLOURMILL (N1.2bn), ZENITH (N1.2bn) and GUARANTY (N361.3m).

Mixed Sector Performance
Sector performance was mixed as 3 of the 5 indices under our coverage closed southwards while 2 appreciated. The Industrial Goods index led gainers, up 2.8% on account of gains in DANGCEM (+1.2%) and WAPCO (+3.4%) while the Consumer Goods index gained 0.6% on account of price appreciation in INTBREW (+4.8%), DANGSUGAR (+2.6%) and NIGERIAN BREWERIES (+0.2%). On the flipside, the Banking index lost 1.5% as sell pressures in UBA (-6.8%), ZENITH (-2.0%) and GUARANTY (-1.2%) dragged the index lower. The Insurance Index trailed, shedding 0.1% as losses in AIICO (-4.3%) and LASACO (-4.9%) dragged performance. Lastly, the Oil & Gas index declined 6bps following sell-offs in FORTE (-3.5%), ETERNA (-4.6%) and TOTAL (-1.2%) erasing gains in 11PLC (+5.0%).

Investor Sentiment Stays Flat
Investor sentiment as measured by market breadth (advance/decline ratio) stayed flat at 0.6x consequent on 16 stocks advancing against 26 decliners. The top performing stocks today were JAPAULOIL (+8.2%), 11PLC (+5.0%) and STERLING (+5.0%) while UBA (-6.8%), WEMA (-4.9%), and LASACO (-4.9%) led the laggards for the day. Following a rebound in the local bourse on the back of gains in DANGCEM, we (Afrinvest) expect continued positive performance in the near term as attractive opportunities remain particularly in the Banking Sector.