Market Sustains Upbeat as Investor Sentiment Remains Positive

The Nigerian Equities market sustained its upbeat performance in today’s trading session as the benchmark index rose 96bps to settle at 34,135.10 points, boosting YTD to 27.0%. Performance was driven by price appreciations in market heavyweights - DANGCEM (+2.4%), ETI (+7.1%), GUARANTY (+0.8%) and NIGERIAN BREWERIES (+0.6%). Consequently, investors gained N112.1bn in value as market capitalization rose to N11.8tn. Activity level however, softened as volume and value traded declined 2.2% and 8.9% to 482.5m units and N5.7bn respectively.

Mixed Performance across Sectors
Performance across sectors was mixed, although positively skewed, as 3 of 5 indices appreciated. The Industrial Goods index advanced the most, up 1.3% on the back of positive sentiment towards DANGCEM (+2.4%) and CCNN (+10.2%) while upticks in NIGERIAN BREWERIES (+0.6%) and INTBREW (+8.8%) drove the Consumer Goods index 0.7% northwards. Likewise, the Banking Index rose 0.5% on account of gains in ETI (+7.1%) and GUARANTY (+0.8%). On the flip side, the Oil & Gas index dipped 1.9% due to sell-offs in MOBIL (-5.0%) and FORTE (-5.0%) while the Insurance index slid 0.4% on account of losses in CONTISURE (-6.5%) and LASACO (-3.6%).

Investor Sentiment Remains Positive
Investor sentiment as mirrored by the market breadth (advancers/decliners’ ratio) settled at 1.6x as 28 stocks advanced against 18 that declined. At the summit of the gainers’ chart were CCNN (+10.2%), MAYBAKER (+9.9%) and INTBREW (+8.8%) while CAP (-9.5%), MOBIL (-5.0%) and FORTE (-5.0%) topped the losers’ chart. We reiterate that the upbeat performance of the market has been largely driven by improved macroeconomic fundamentals resulting in increased foreign investor participation. Nevertheless, we expect profit taking in some stocks that have appreciated in the previous trading sessions.