Bullish Performance at the Exchange

The local bourse rebounded in Tuesday’s trading session, as the All Share Index (ASI) rose 0.7% to 32,406.18 points due to buying interests in bellwether stocks - ZENITH (+5.6%), GUARANTY (+3.3%) and UBA (+4.6%). Consequently, market capitalisation increased N80.6bn to N12.1tn while YTD gain settled at 3.1%. Activity level also strengthened as volume and value traded improved 55.4% and 23.7% to 361.8m units and N4.2bn respectively. TRANSCORP (120.2m units), ZENITH (37.3m units) and FBNH (31.2m units) were the top traded by volume while DANGCEM (N951.6m), ZENITH (N925.5m) and GUARANTY (N778.0m) led the top traded by value.

Bullish Sector Performance
Performance across sectors was bullish as 4 of 5 indices under our coverage trended northwards. The Banking index led gainers, up 3.0% following bargain hunting in ZENITH (+5.6%) and GUARANTY (+3.3%). The Oil & Gas and Consumer Goods indices trailed, advancing 0.7% and 0.3% respectively on the back of gains in OANDO (+6.3%), DANGSUGAR (+4.1%) and UNILEVER (+0.5%). The Insurance index trailed, up 0.2% following investor interests in CUSTODIAN (+8.3%) and CORNERSTONE (+5.0%). On the flip side, the Industrial Goods index shed 0.2% on account of sell offs in DANGCEM (-0.4%) and FIRSTALUM (-10.0%).

Investors Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.1x from 0.3x recorded yesterday as 16 stocks advanced against 14 decliners. JAPAULOIL (+9.5%), SOVRENINS (+9.5%) and ABCTRANS (+9.1%) were today’s best performing stocks while FIRSTALUM (-10.0%), TRANSCORP (-9.7%) and WEMA (-9.7%) declined the most. Despite today’s rebound in market performance, we advise investors to trade cautiously as we expect sell pressures to return to the market by close of the week – eve of the rescheduled presidential elections.