Equities Market Extends Positive Performance

The positive performance in the local bourse was sustained as the All Share Index (ASI) gained 4bps to settle at 41,233.42 points on Monday while the YTD return stood at 7.7%. In view of that, investors lost N16.6bn in value as market capitalisation fell to N14.9tn. The positive performance was largely driven by gains in DANGCEM (+1.0%) and GUINNESS (+0.5%). Activity level weakened as volume and value traded depreciated 21.9% and 39.3% to 221.4m and N2.6bn respectively. The top traded stocks by volume were LASACO (24.3m), GUARANTY (20.7m) and SOVRENINS (16.6m) while GUARANTY (N937.6m), NIGERIAN BREWERIES (N499.8m) and ZENITH (N292.4m) were the top traded by value.

Mixed Performance Across Sectors
Sector performance was largely bullish as 3 of 5 indices under our coverage closed in the green. The Industrial Goods index led advancers, up 0.4% on the back of gains in DANGCEM (+1.0%). Similarly, the Oil & Gas and Insurance indices closed 0.2% and 0.1% higher respectively due to bargain hunting in 11PLC (+4.8%), ETERNA (+9.8%), AIICO (+4.4%) and MBENEFIT (+3.9%). On the flipside, the Banking and Consumer Goods indices shed 0.3% and 0.2% respectively following losses in GUARANTY (-0.6%), ZENITH (-0.2%), NIGERIAN BREWERIES (-0.8%) and HONYFLOUR (-1.5%).

Investor Sentiment Remains
Investor sentiment measured by market breadth (advance/decline ratio) remained flat at 1.2x  as 21 stocks gained against 18 stocks that declined. The top performing stocks today were ETERNA (+9.8%), CILEASING (+5.0%) and 11PLC (+4.8%) while UNITY (-5.0%), UAC-PROP (-4.9%) and NPFMCRFBK (-4.7%) were the worst performing stocks. Given the positive investor sentiment, we expect bargain hunting to continually buoy performance in the near time as attractive prices exist in the market.