Bulls Regain Hold of the Bourse

The Nigerian equity market shook off yesterday’s bearish start to the week as the All Share Index (ASI) appreciated 1.3% to close at 28,209.93 points while YTD loss trimmed to -1.5%.  Similarly, market capitalization rose N127.1bn to settle at N9.7tn. Today’s market performance was largely driven by gains in DANGCEM (+3.9%), ZENITH (+0.5%) and ACCESS (+0.4%). However, activity level declined as volume and value traded slid 29.5% and 14.1% to settle at 231.5m units and N2.5bn respectively.

All Indices Close in Green Save for Consumer Goods Index
Similar to yesterday, all indices closed in green save for the Consumer Goods index which fell 7bps on account of losses in UNILEVER (-1.1 %) and NIGERIAN BREWERIES (-1bp). The Industrial Goods index advanced the most, up 2.0% driven by gains in DANGCEM (+3.9%). Likewise, sustained buying interest in CONOIL (+10.2%) and uptrend in TOTAL (+2.5%) drove the Oil & Gas indices 1.3% northward. The Banking index appreciated 0.1% on account of appreciation in ACCESS (+0.4%) and ZENITH (+0.5%) whilst NEM (+4.9%) drove the Insurance index 1bp higher.

Investor Sentiment Declines
Sentiment waned as revealed in the market breadth which slid to 1.1x (from 1.5x) on the back of 15 advancing stocks against 14 decliners. Similar to the previous 6 trading days, CONOIL (+10.2%) topped the gainers chart. Other top gainers were OANDO (+4.9%) and NEM (+4.9%) while AIICO (-4.8%), UACN (-3.6%) and WEMABANK (-3.1%) were the worst performers. At the end of the 5th Monetary Policy Committee (MPC) meeting in 2016, the MPC voted to maintain status quo on all key rates, in line with Afrinvest Research’s expectations. Nonetheless, on the back of the current market bullish streak (save for yesterday), we expect to see profit taking by short term speculative investors in the sessions ahead.