Equities Market Remains Upbeat

The Nigerian equities market sustained yesterday’s uptrend as the benchmark index- All Share Index- improved 1.0% on Thursday to 27,028.24 points. Similarly, investors gained N73.3bn as market capitalisation expanded to N9.3tn. Performance was largely driven by sustained hunt for bargain by investors in key banking tickers such as GUARANTY (+7.3%), ETI (+4.8%) and ZENITH (+4.3%). However, activity level was mixed as volume traded fell 25.7% to 498.7m units while value traded rose 32.8% to N2.7bn.

Mixed Performance across Sectors
Performance was mixed across sectors as 3 sector indices advanced while 2 declined. For the second consecutive trading session, the Banking sector index led sector gainers, up 4.6% on the back of persistent buying interest in GUARANTY (+7.3%) and ZENITH (+4.3%). The Industrial and Oil & Gas indices also followed suit, appreciating 1.2% and 1.1% respectively on account of gains in WAPCO (+3.4%) and  OANDO (+5.0%). On the other hand, the Consumer goods index depreciated the most, down 0.8% against the backdrop of profit taking in GUINNESS (-3.9%) and NIGERIAN BREWERIES (-1.6%). The Insurance index also fell 0.5%.

Sentiments turn Positive
Investor sentiments strengthened today as market breadth (advancers/decliners’ ratio) rose to 1.9x (from 0.9x yesterday) on account of 33 stocks that gained while 17 declined. The best performing stocks today were FCMB (+9.9%), ETERNA (+8.9%) and GUARANTY (+7.3%) while NCR NIGERIA (-9.6%), UNIONHOMES (-9.4%) and UNILEVER (-5.0%) were the worst performing counters. As the market continues on a bullish streak, we expect to see some profit taking in the trading session ahead, however, we expect the market to close positive for the week.