Bulls Extend Lead at the Exchange

The stock market remained upbeat on Tuesday as the All-Share index advanced 1.3% to settle at 32,647.10 points due to gains in MTNN (+4.1%), STANBIC (+4.4%) and ZENITH (+2.3%). Consequently, market capitalisation rose ₦211.1bn to ₦17.1tn while YTD return improved to 20.6%. Activity level decreased as volume and value traded declined by 9.0% and 6.1% to 578.8m units and ₦7.7bn respectively. The most traded stocks by volume were ZENITH (67.9m units), FBNH (64.7m units) and ACCESS (60.2m units) while ZENITH (₦1.6bn), GUARANTY (₦1.2bn) and DANGCEM (₦556.3m) led by value .

Outstanding Sector Performance 

All 6 sectors under our coverage closed positive. The Insurance and AFR-ICT indices led the pack, appreciating 3.3% and 2.3% respectively following gains in CUSTODIAN (+1.8%), LINKASSURE (+8.9%), and MTNN (+4.1%). Similarly, the Oil & Gas and Banking indicators advanced 1.3% and 0.9% respectively, reflecting the sustained buying interest in OANDO (+9.7%), ARDOVA (+7.1%) and ZENITH (+2.3%). Lastly, the Consumer and Industrial Goods indices closed higher by 0.8% and 0.2% respectively as investors took position in DANGSUGAR (+7.2%), NIGERIAN BREWERIES (+1.0%) and BUACEMENT (+1.1%).

Investor Sentiment Shrinks

Investor sentiment as measured by market breadth (advance/decline ratio) declined to 3.5x from the 4.5x recorded in the previous day as 39 tickers gained against the 11 that declined. NEIMETH (+10.0%), GLAXOSMITH (+10.0%), CADBURY (+10.0%) and NASCON (+10.0%) were the top performers while ABCTRANS (-8.8%), PZ (-5.4%) and CHAMS (-4.3%) led  the decliners. We expect investors to take profit in the next trading session following the sustained bullish momentum.