Equities Market halts 4-day Bullish Run

The Nigerian equities market halted its 4-day bullish run as the benchmark index depreciated 0.1% to settle at 28,078.30 points, while YTD gain pared to +4.5%. Consequently, investors lost N12.1bn as market capitalization fell to N9.7tn. Today’s performance was dragged by depreciations in NIGERIAN BREWERIES (-2.2%), ETI (-5.0%) and ZENITH (-1.1%) which offset gains in PZ (+5.0%) as well as GUARANTY (+1.6%). Notably, GUARANTY touched a 16-year high of N32.00 today following the sustained rally in the counter.  Similarly, activity level waned as volume and value traded contracted 31.9% and 30.8% to 208.3m units and N3.7bn respectively.

Mixed performance across Sectors
Performance across sectors was mixed as 3 of 5 indices appreciated. The Oil & Gas index gained the most, up 0.4% on account of price appreciations in SEPLAT (+1.4%) and TOTAL (+1.9%). Similarly, the Insurance and Industrial Goods indices improved 0.1% apiece on the back of gains in LINKASSURE (+3.5%) and CCNN (+5.0%). On the flip side, the Consumer Goods index slid 0.7% due to depreciations in NIGERIAN BREWERIES (-2.2%) and CADBURY (-5.0%) while the Banking index fell 3bps on the back of losses in ETI (-5.0%), ZENITH (-1.1%) and UBA (-1.0%).

Investor Sentiment Strengthens
Investor sentiment strengthened today, as reflected in the market breadth (advancers/decliners ratio) which rose to 1.7x (from 1.0x recorded last Friday) consequent on 27 stocks that advanced against 16 that declined. The top gainers were DANGFLOUR (+6.4%), CCNN (+5.0%) and PZ (+5.0%) while ETI (-5.0%), CADBURY (-5.0%) and NEM (-4.9%) declined the most. Today’s negative close was majorly due to profit taking by investors, however, we expect performance to strengthen in trading sessions ahead as investor sentiment remains strong.
NASD OTC Exchange Market Activities
In the NASD OTC exchange, total volume and value traded closed at 33,496 units and N1.2m respectively. Only six counters traded today- CSCS, SWAP, MIXREAL, GEFLUID, WAMCO and DIGI. DIGI accounted for 59.7% of total volume traded followed by WAMCO (26.3%).