Stock Market Starts Week on a Positive Note

The Nigerian bourse closed the first trading session of the week on a positive note as the All Share Index (ASI) gained 0.6% to close at 24,827.50points. Market capitalization also increased N47.4bn to close at N8.5tn. Overall market performance was influenced by price appreciations in DANGCEM, SEPLAT and GUARANTY as they appreciated 3.8%, 3.7% and 0.7% respectively. Market activity waned marginally as volume and value traded were down 0.1% and 0.7% to close at 283m units and N2.9tn respectively.

Mixed Performance across Sectors
The Industrial goods index appreciated the most as gains in DANGCEM (+3.8%) drove the index 2.0% northwards. Similarly, the Oil & Gas index rose 0.6% on renewed buy sentiment in SEPLAT (+3.7). However, the Banking and Consumer Goods indices depreciated 1.0% and 1.4% respectively due to sustained selling pressures in ZENITH (-4.9%%) and NESTLE (-3.6%). The Insurance index declined 0.1%

Negative Market Breadth
Sentiments in the Nigerian equities market was negative today as market breadth (advancers/decliners ratio) closed at 0.5x as a result of 13 stocks advancing against 24 declining. Leading the top gainers were VITAFOAM (+9.3%), CUTIX (+4.9%) and AFRIPRUD (+4.5%) while TIGERBRANDS, INTBREW and CONOIL led laggards, shedding 5.0% apiece. Ahead of full year earnings and corporate actions, we expect more bargain hunting in dividend-paying stocks. However, the volatility in market performance buttresses the need for investors to stay cautious in timing entry, especially for short-term holding period investments, even as we consider the current prices attractive for medium to long term investors.

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