Stock Market Extends Gains

The All Share Index sustained its positive performance today, rising 1.4% to close at 36,112.37 points while YTD return improved to 34.4%. Accordingly, market capitalisation rose N174.8bn to N12.4tn. The major drivers of today’s performance were DANGCEM (+4.7%), GUINNESS (+10.2%), NIGERIAN BREWERIES (+0.8%) and STANBIC (+2.3%). On the other hand, market activity declined as volume and value traded fell 21.0% and 23.1% to settle at 222.7m units and N4.2bn respectively.

DANGCEM Drives Industrial Goods Index Higher
Performance across sectors was mixed. The Industrial Goods index advanced the most, up 2.9% on account of gains in DANGCEM (+4.7%) and WAPCO (+1.3%). The Consumer Goods index followed, closing 1.0% higher due to appreciations in NIGERIAN BREWERIES (+0.8%), GUINNESS (+10.2%) and DANGSUGAR (+3.5%). On the flip side, the Oil & Gas index led sector losers, down 2.9% as a result of sell-offs in SEPLAT (-5.0%) and OANDO (-3.5%). In the same manner, losses in FBNH (-4.3%) and NEM (-3.8%) dragged the Banking (-0.3%) and Insurance (-0.1%) indices lower.

Market Breadth Remains Unchanged
Market breadth remained unchanged from 0.9x recorded yesterday after 19 stocks advanced against 21 decliners. Today’s best performing stocks were GUINNESS (+10.2%), DANGCEM (+4.7%) and AIICO (+3.6%), while SEPLAT (-5.0%), NCR (-4.9%) and SKYEBANK (-4.8%) were the worst performers. We attribute today’s positive close to bargain hunting in stocks which had previously declined and investors’ reaction to GUINNESS’s impressive H1:2017 result.  We envisage the market will close the week in the green.