Equities Market Sustains Gaining Streak

The Nigerian bourse closed positive today, as the All Share Index (ASI) appreciated 0.6% to settle at 24,135.40 pts. The positive close was driven by sustained positive sentiment on bellwether stocks– DANGCEM (+1.5%), GUARANTY (+3.1%) and NIGERIAN BREWERIES (+1.0%). Market capitalization improved N53.1bn to close at N8.3tn.  Activity level measured by volume and value traded dipped 89.2% and 20.1% to close 320.8m and N1.8bn respectively.

Consumer Goods Sector Lone Loser
All sectors on the Nigerian bourse closed stronger save Consumer Goods index. The Oil & Gas Index led gainers as price appreciation in SEPLAT (+4.0%) drove the index northwards. Similarly, the Banking and Industrial Goods Indices rose 0.9% and 0.8% respectively on the back of rally in GUARANTY (+3.1%), FBNH (+1.0) and DANGCEM (+1.5%). The Insurance index improved 0.2% on gains in CONTINSURE (+2.0%). On the flip side, the Consumer Index shed 0.2% to close as lone loser on the back of price depreciation in UNILEVER (-5.0%).

Positive Market Sentiments Sustained
Sentiments in the market remained positive today as market breadth – advancers’/decliners’ ratio - improved to 1.5x (from 1.1x the previous trading session) as 20 stocks advanced while 13 declined. Top gaining stocks were FCMB (+7.8%), OKOMUOIL (+5.0%) and MOBIL (+5.0%) while UNILEVER (-5.0%), 7UP (-5.0%) and CONOIL (-5.0%) were the highest declining stocks. We believe recent uptrend remained driven by bargain hunting which might not be sustained given the prevailing macroeconomic headwinds. Nonetheless, we are also of the view that dividend investors can also benefit from current valuation by positioning in stocks with consistent dividend paying history ahead of full year earnings releases.