DANGCEM Drags Benchmark Index

The local bourse closed negative today despite a rally in small and mid cap stocks as sell offs in DANGCEM dragged the All Share Index 20bps lower to settle at 38,187.28 points while YTD return retreated to -0.1%. Accordingly, market capitalization decreased by N27.6bn to N13.6tn. Today’s performance can primarily be attributed to losses in DANGCEM (-3.0%). Ex- DANGCEM the benchmark index would have appreciated 95bps. Activity level softened as volume and value traded fell 137.3% and 18.8% to 589.6m units and N2.1bn units respectively.

Insurance Sector Leads Bullish Performance
Sector performance was broadly positive as all indices save for the Oil & Gas index  which shed 1.4% due to price depreciation in MOBIL (-9.2%), closed positive. On the flipside, the Insurance index appreciated the most, up 1.5% following gains in MANSARD (+5.0%) and NEM (+4.4%). The Banking index trailed, rising 1.2% as bargain hunting in ETI (+2.9%), GUARANTY (+0.6%) and FIDELITY (+8.5%) buoyed the index. In the same vein, the Industrial and Consumer Goods indices grew 0.6% and 0.5% as investors took position in WAPCO (+5.0%), CCNN (+3.7%), DANGSUGAR (+7.4%) and DANGFLOUR (+5.0%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 3.4x from 2.3x recorded yesterday consequent on 37 stocks advancing against 11 stocks that declined. The best performing stocks were DIAMOND (+9.6%), FCMB (+9.5%) and FIDELITY (+8.5%) while MOBIL (-9.1%), NEIMETH (-8.0%) and CUTIX (-5.0%) were the worst performers. Despite today’s negative performance, investor sentiment strengthened hence we expect to see a rebound in the market in subsequent trading sessions.