At the close of trade today, the market snapped a 2-day losing streak as the All Share Index rebounded 44bps to settle at 35,103.40 points while the YTD return advanced to 30.6%. Accordingly, market capitalization added N52.4bn to settle at N12.1tn. The upturn in performance was majorly on account of gains in DANGCEM (+1.9%) as well as ZENITH (+1.8%) and NESTLE (+0.4%). Ex-DANCEM, market would have lost 18bps. However, activity level moderated as both the volume and value traded dipped 72.7% and 64.9% to 136.4m units and N1.3bn respectively.
Mixed Sector Performance
The performance of sector indices was broadly mixed with the Industrial Goods index leading the gainers’ chart, up 0.8%, attributable to rally in DANGCEM (+1.9%). Similarly, the Insurance index expanded 0.7% on the back of gains in NEM (+4.3%) and LINKASSURE (+4.5%). In contrast, the Oil & Gas index shed 0.3% due to losses in OANDO (-1.5%) and MOBIL (-1.2%) whilst the Consumer Goods and Banking indices fell 0.2% apiece against the backdrop of weak appetite in NIGERIAN BREWERIES (-0.9%) and GUARANTY (-1.0%) respectively.
Market Breadth Turns Positive
Market breadth turned positive to 1.0x from 0.8x recorded yesterday as 23 stocks advanced against 22 declining stocks. Today’s top gainers were CHAMPION (+8.1%), NEIMETH (+4.6%) and LINKASSURE (+4.5%) while the top losers were MORISON (-8.3%), UACPROP (-5.0%) and UPL (-4.8%). Despite the rebound in ASI, we note that market breadth is yet to comfortable crossover to the positive territory. The low level of activity as shown in weaker volume and value traded further suggests sentiment for equities remains low; thus, we expect the market to trade sideways in subsequent sessions pending the release of 9M earnings.