Stock Market Sustains Bullish Performance

The local bourse extended gains to the 2nd session as the NSE All Share Index (ASI) rose 0.9% to close at 40,846.24 points on Wednesday. As a result, market capitalisation stood at N14.8tn as investors gained N125.4bn in value while YTD return strengthened to 6.8%. Price appreciation in DANGCEM (+2.0%) as well as bargain hunting in INTBREW (+4.9%) and FBNH (+1.7%) drove the bullish performance recorded today. Despite improved market performance, activity level remained mixed as volume traded grew 5.4% to 367.2m units while value traded fell 26.6% to N5.3bn. The top traded stocks by volume were ZENITH (100.6m), SKYE (43.0m) and ACCESS (24.0m) while ZENITH (N2.7bn), GUARANTY (N908.7m) and ACCESS (N283.2m) were top traded stocks by value.

Banking and Insurance Indices Trend Southwards amidst Bullish Sector Performance
The performance across Sectors was largely bullish as 3 of 5 indices under our coverage gained while 2 declined. The Industrial Goods index topped the gainers chart, up 2.0% on account of buying interest in DANGCEM (+2.0%) and WAPCO (+3.0%) while the Oil & Gas index trailed, 0.8% higher largely due to price appreciation in 11PLC (+8.0%). Lastly, the Consumer Goods index closed up 0.7% as bargain hunting in INTBREW (+4.9%) and GUINNESS (+0.5%) drove the positive performance of the index. On the other hand, the Insurance index (-0.7%) led decliners as losses in CONTINSURE (-3.2%) and NEM (-2.7%) dragged the index lower while the Banking index lost 0.3% due to sell-offs in UBN (-3.0%) and UBA (-0.9%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.4x consequent on 27 stocks advancing against 19 stocks that declined. LEARNAFRICA (+8.2%), UNITY (+5.0%) and 11PLC (+5.0%) were the top performing stocks, while CILEASING (-6.8%), REDSTAREX (-4.9%) and BETAGLAS (-4.9%) led laggards today. Following the consecutive bullish performance recorded, we anticipate this trend to continue in subsequent trading sessions as attractive entry opportunities remain in the market.