Domestic Bourse Performs Positively

The market performed positively this week, as investors took positions in GUARANTY (+14.7%), ACCESS (+9.0%) and FBNH (+8.8%). Thus, the All Share Index rose 2.9% W-o-W to 31,529.9 points, YTD performance settled at 0.3% while market capitalization rose by N333.5bn to N11.8tn. Activity level also improved as average volume and value traded advanced 31.2% and 31.8% W-o-W to 378.4m units and N5.4bn respectively. The top traded stocks by volume were UBA (161.9m units), ZENITH (150.8m units) and FBNH (145.7m units) while GUARANTY (N3.6bn), ZENITH (N3.5bn), and UBA (N1.2bn) were the top traded stocks by value.

Performance across sectors was largely bullish W-o-W as 4 of 5 indices under our coverage closed northwards. The Banking index gained the most, up 8.1% due to price appreciation in GUARANTY (+14.7%) and ACCESS (+9.0%). In the same vein buying interest in DANGFLOUR (+18.1%), FLOURMILL (+7.8%), AIICO (+12.5%) and WAPIC (+5.0%) drove the Consumer Goods and Insurance indices 4.1% and 4.0% higher. Similarly, the Oil & Gas index rose 2.5% as ETERNA (+10.6%) and SEPLAT (+5.8%) recorded gains. On the other hand, the Industrial Goods index lost 0.7% dragged by DANGCEM (-2.4%).

Investor sentiment measured by market breadth (advance/decline ratio) strengthened to 2.5x from 0.3x recorded last Friday as 50 stocks advanced against 20 that declined. The best performers this week were REGALINS (+19.0%), DANGFLOUR (+18.1%) and GUARANTY (+14.7%) while ROYALEX (-13.3%), GUINEAIN (-13.0%) and CHAMPION (-10.0%) led laggards. Following the bullish performance this week, we expect sell pressures in subsequent sessions leading to the elections.