Nigerian Bourse Extends Gains to 5th Consecutive Day

The Nigerian equity market’s positive close was extended to the 5th trading session as the All Share Index appreciated 2.2% today to close at a 6-week high of 25,396.83 points whilst market capitalization also increased N191.5bn to close at N8.7tn. The bullish close today further pared YTD loss of the benchmark index to 11.3%. Sustained optimism in the Bourse was majorly on account of positive investor sentiments toward Industrial Goods and Banking bellwethers - DANGCEM (+7.5), ZENITH (+5.0%) and ETI (+2.5%). Similarly, market activity was stronger as volume and value traded increased 72.2% and 48.8% to close at 275.1m units and N1.6bn respectively.
Oil & Gas Sector Sole Loser
The Oil & Gas index shed 2.4% to end the day as the lone loser (amongst our coverage indices) on the back of further sell pressure in FORTE (-5.0%). Bullish sentiment on bellwethers - DANGCEM (+7.5%), ZENITH (5.0%) and ETI (+2.5%) pushed the Industrial Goods and Banking Indices northwards 1.9% and 4.2% respectively. Similarly, amidst bargain hunting in MANSARD (4.4%) and AIICO (3.9%), the Insurance Index also gained 1.2%. The Consumer Goods index closed flat as gains in NB (+0.5%) offset losses in UNILEVER (-3.6%).

Positive Sentiments Remains
Sentiment remained broadly bullish as market breadth (the advancers’/decliners’ ratio) closed at 1.3x owing to 20 advancing stocks against 15 declining stocks. TIGERBRANDS (9.3%), DANGCEM (7.5%) and OANDO (7.3%) led the gainers while FIDSON (-9.4%), TOTAL and FO (-5.0% a piece) led the laggards. In line with our viewpoint from previous reports this week, market activities have continued to be influenced by corporate actions as seen in the 18.5% WTD rally in DANGCEM, while other dividend-paying tickers are also attracting investors’ buy-sentiments. Although we expect the rally to give way to some profit-taking in the immediate trading session, we believe sentiment over the short term will continue to have a bullish bias as full year results continue to trickle in.