Bullish Sentiment for Equities Pushes Index Higher

In line with expectation, the bullish run in the equities market continued today as the All Share Index (ASI) gained 3.2% to close at 28,423.70 points, expanding YTD gain to 5.8%. As a result, market capitalisation improved N303.2bn to close at N9.8tn. As with previous sessions, today’s positive performance was driven by rally across sectors, but was largely buoyed by gains in bellwethers such as DANGCEM (+4.4%), NIGERIAN BREWERIES (+5.0%) and GUARANTY (+4.9%). Similarly, activity level improved as volume and value traded rose 37.1% and 38.4% to settle at 801.1m units and N7.8bn respectively.

Oil & Gas Index Retreats
Performance across sectors was broadly positive as the Oil & Gas index emerged the sole loser, down 2.3% on account of losses in SEPLAT (-9.8%) and OANDO (-0.3%). The Industrial Goods index rebounded 4.3% to top the gainers’ chart due to appreciations in DANGCEM (+4.4%), CCNN (+9.9%) and WAPCO (+4.9%). The Banking index followed closely with a 4.0% gain on the back of sustained rally in GUARANTY (+4.9%) and ZENITH (+4.9%). Similarly, the Consumer Goods index closed 3.3% higher as a result of gains in NIGERIAN BREWERIES (+5.0%) and UNILEVER (+4.7%) while the Insurance index added 6bps due to strong appetite in MANSARD (+4.7%) and NEM (+4.1%).

Market Breadth Retreats but Still Positive
Investor sentiment stayed bullish today as market breadth settled at 3.2x (42 advancers against 13 decliners) - albeit lower than 6.3x recorded yesterday. The best performing stocks today were FORTE (+10.2%), ETI (+10.1%) and CCNN (+9.9%) while SEPLAT (-9.7%) BOCGAS (-4.8%) and CONTINSURE (-4.6%) declined the most. We expect sentiment to stay positive in the shorter term as investors  react to rebound in economic growth drivers as well as improved flexibility in foreign exchange market structure.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, total volume and value stood at 38,200 units and N4.9m respectively. Three counters traded today with WAMCO (+7.1%) being the sole gainer. FOOD CONCEPT and CSCS closed the day flat.

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