The domestic bourse opened the week on a positive note, extending gains from the previous week on the back of price appreciation in ZENITH (+2.3%), UBA (+4.6%) and UNILEVER (+5.4%). As a result, the All Share Index (“ASI”) inched 0.8% higher to 31,781.87 points, YTD performance improved to 1.1% while market capitalisation increased by N94.0bn to N11.9tn. On the other hand, activity level weakened as average volume and value traded declined by 24.0% and 53.7% respectively to 550.2m units and N5.6bn respectively. In terms of volume, the top traded stocks for the day were ACCESS (101.6m units), UBA (69.9m units) and DIAMOND (52.6m units) while the top traded stocks by value were ZENITH (N1.2bn), GUARANTY (N1.1bn) and DANGCEM (N744.2m).
Bullish Sector Performance Sustained
Across sectors, performance was bullish as all indices under our coverage closed in the green. The Banking Index gained the most, up 1.9% as ZENITH (+2.3%), UBA (+4.6%) and ACCESS (+5.3%) enjoyed buying interest. The Insurance index trailed, up 1.2% on the back of sustained gains in WAPIC (+4.8%) and AIICO (+6.9%). Similarly, the Oil & Gas and Consumer Goods indices inched northwards, up 0.6% and 0.4% respectively due to upticks in OANDO (+10.0%), SEPLAT (+0.9%), UNILEVER (+5.4%) and DANGFLOUR (+9.5%). In line with market performance, the Industrial index reversed losses recorded the previous week, adding 0.3% following price appreciation in BETAGLASS (+9.6%).
Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) remained strong at 4.1x as 41 stocks advanced against 10 stocks that declined. The top outperforming stocks for the day were OANDO (+10.0%), LASACO (+10.0%) and CADBURY (10.0%) while the least performing stocks for the day were CILEASING (-10.0%), MEDVIEW (-8.1%) and TOTAL (-7.2%). Although the domestic bourse posted a positive performance, we (Afrinvest) believe this may be short-lived as today’s slowdown in gains indicates profit-taking activities may begin in subsequent sessions.