Equities Market Rally Enters 6th Session

The Nigerian Bourse continued its impressive performance today as the All Share Index rose 1.7% to close at 25,816.29 points, paring YTD loss further to 9.9%. Market capitalization settled at N8.9tn, up N144.2bn. Today’s performance was largely influenced by sustained buying interest in DANGCEM (+5.0%) ZENITH (+2.7%) and UBA (+6.7%). Likewise, activity strengthened as volume and value traded increased 15.4% and 38.5% to close at 317.4m units and N2.3bn respectively.
Mixed Performance across Sectors
The Industrial Index gained the most today, appreciating 3.0% on the back of a late rally in DANGCEM (+5.0%) and appreciation in CAP (+5.0%). Gains in ZENITH (+2.7%), UBA (+6.7%), MANSARD (+3.7) and AIICO (+1.2%) also drove the Banking and Insurance Indices northwards 1.7% and 0.9% respectively. However the Consumer Goods Index shed 1.1% as bellwethers - NIGERIAN BREWERIES (-3.7%) and 7UP (-5.0) - declined. The Oil & Gas Index closed flat.

Positive Market Breadth Sustained
Investors’ sentiment remained strong as market breadth (advancers’/decliners’ ratio) closed positive at 2.2x as a result of 22 stocks advancing against 10 declining stocks. At the end of today’s trading session, DIAMOND, AFRIPUD rising 10.0% a piece and DANGSUGAR (+9.1%) led the gainers list whilst 7UP (-5.0), AIRSERVICE  (-4.8%) and WEMABANK (-2.2%) led the laggards.  Amidst the pockets of opportunities due to cheap market valuations and expectation of corporate actions, we expect sentiment to remain positive as investors continue to position ahead of earnings releases.