Domestic Bourse Opens Trading Week Positive

The domestic bourse opened the first trading session of the week on a positive note as gains in DANGCEM (+1.7%), FBNH (+1.4%) and DIAMOND (+3.9%) drove the All Share Index 0.4% higher to 29,964.79 points. Consequently, YTD return moderated to -4.7% while market capitalisation rose by N50.0bn to N11.2tn. On the other hand, activity level weakened as volume and value traded decreased 35.8% to 132.4m units and 60.5% to N1.1bn. The top traded stocks by volume were DIAMOND (50.1m units), ACCESS (16.5m units) and ZENITH (12.3m units) while the top traded stocks by value were ZENITH (N268.6m), GUARANTY (N177.4m) and GUINNESS (N126.3m).
Bearish Sector Performance
Performance across sectors was bearish as 4 of 5 indices under our coverage closed in the red. The Industrial Goods index was the lone gainer, up 1.1% due to price appreciation in WAPCO (+2.0%) and DANGCEM (+1.7%). On the flip side, the Insurance and Oil & Gas indices shed 1.5% and 0.3% respectively dragged by losses in LINKASSURE (-9.2%), LASACO (-3.3%) and FORTE (-3.5%). Also, sell pressures in ZENITH (-0.2%), WEMA (-8.3%) and GUINNESS (-1.5%) weighed on the Banking (-0.1%) and Consumer Goods (-0.1%) indices.
Investor Sentiment Weakens
Investor sentiment measured by market breadth (advance/decline ratio) weakened, albeit strong to 1.0x from 6.0x recorded the previous trading session consequent on 11 stocks advancing relative to 11 declining. The best performers were FIRSTALUM (+9.1%), UCAP (+5.3%) and MBENEFIT (+5.0%) while LINKASSURE (-9.2%), WAPIC (-9.1%) and NAHCO (-8.3%) led laggards. Although performance has been positive in the last three trading sessions, we (Afrinvest) believe this trend would be short lived. We anticipate negative performances in subsequent trading sessions as investors book profit and wait on the sidelines till post-election stability is established.