Buying Interest Waxing Stronger

The Nigerian Bourse started the week on a positive note for the 3rd consecutive week, as the All Share Index improved 1.5% to 26,824.35 points. Monday’s rally stretched daily gains to the 3rd consecutive trading session. Similarly, market capitalisation rose N131.9bn to settle at N9.2tn. Today’s positive close was majorly driven by increased buying interest in market bellwethers, namely NIGERIAN BREWERIES (+2.7%), GUARANTY (+2.5%) and DANGCEM (+1.2%). However, activity level waned as volume and value traded slid 43.4% and 41.1% to 321.0m units and N2.1bn respectively.

All Sector Indices Advance
Bullish sentiments were witnessed across board as all sector indices closed in the green. The Industrial goods index chaired sector gainers, up 2.3% on account of price appreciation in WAPCO (+3.9%) and DANGCEM (+1.2%). The Banking index trailed, improving 1.9% against the backdrop of gains in ZENITH (+2.7%) and GUARANTY (+2.5%). The Consumer goods index followed closely, rising 1.7% following the rally in NIGERIAN BREWERIES (+2.7%). In the same vein, the Oil & Gas and Insurance indices advanced 1.3% and 1.2% respectively.

Positive sentiments Persist
Positive sentiments were sustained as market breadth (advancers/decliners ratio) settled at 1.1x consequent on 27 stocks that advanced while 24 declined. The gainers’ chart was topped by CONOIL (+10.2%), OANDO (+10.0%) and UBA (+9.4%) while MRS (-9.7%), VITAFOAM (-9.6%) and GCAPPA (-5.0%) led the losers’ list. We are of the view that investors’ sentiment remains stoked by recent reforms by the government, thus we advise investors to maintain early bird positioning in value stocks. Nonetheless, we advise caution as profit taking may set in after consecutive days of uptrend.