Stock Market Bucks 2-day Downtrend

The equities market rebounded at the close of today’s session as the All Share Index (ASI) inched 31bps higher to close at 40,875.69 points while YTD return rose to 6.9%. Consequent on this, investors gained N45.5bn in value as market capitalization grew to N14.8tn. The bullish performance can be attributed to gains in DANGCEM (+1.6%) as well as bargain hunting in ETI (+4.0%) and UBA (+1.3%). In line with improved market performance, activity level improved as volume and value traded increased by 23.5% and 13.3% respectively to 495.6m units and N7.7bn. The top traded stocks by volume were UBA (103.5m), FIDELITY (90.2m) and GUARANTY (63.0m) while GUARANTY (N2.8bn), UBA (N1.2bn) and NIGERIAN BREWERIES (N0.7bn) were the top traded by value.

Consumer Goods Sector Emerges Lone Loser
Sector performance was broadly positive as 4 of 5 indices under our coverage closed northwards. The Industrial Goods Index grew 0.6% on account of gains in DANGCEM (+1.6%). Insurance index trailed, closing 0.4% higher on account of gains in PRESTIGE (+9.3%) and LINKASSURE (+2.4%) while the Banking index closed up 0.3%, as ETI (+4.0%) and UBA (+1.3%) drove the positive performance. Lastly, buying interest in ETERNA (+4.7%) drove the Oil & Gas Index up 0.1%. On the other hand, the Consumer Goods index closed in the red shedding 0.1% due to sell offs in DANGSUGAR (-1.2%), NIGERIAN BREWERIES (-0.5%) and INTBREW (-5.0%).

Investor Sentiment Strengthens
Investor sentiment measured by market breadth (advance/decline ratio) strengthened from 0.7x recorded yesterday to 1.0x as 21 stocks advanced against 22 which declined. The top performing stocks for today were PRESTIGE (+9.3%), LASACO (+5.6%) and TRANSCORP (+4.8%) while the laggards were led by GLAXOSMITH (-9.6%), JAIZBANK (-8.1%) and JAPAUL OIL (-7.6%). Following the rebound in today’s session, we (Afrinvest analysts) expect bargain hunting to continue to drive positive market performance in the near term.