Equities Shake Off Losses

The negative trend in the equities market was reversed today as the All Share Index (ASI) marginally gained 4bps to close at 28,247.56 points. Consequently, market capitalisation advanced by N3.9bn to settle at N9.7tn. Today’s performance was driven by gains in OANDO (+6.9%), SEPLAT (+5.0%), UNILEVER (+3.3%) and NESTLE (+1.2%). Market activity improved as volume and value traded rose 7.1% and 26.2% to settle at 170.4m units and N1.8bn respectively.

Mixed Performance across Sectors
Performance across sectors was mixed. The Oil & Gas index surged 3.1% on the back of buying interest in OANDO (+6.9%) and SEPLAT (+5.0%). Similarly, the Insurance index appreciated 0.8% following gains in CONTINSURE (+5.0%) and NEM (+5.0%). Contrarily, the Banking index retreated (-0.6%) on losses in GUARANTY (-2.3%) and ZENITH (-0.5%), while the Consumer Goods index marginally lost 4bps on account of 7UP (-2.5%) and NIGERIAN BREWERIES (-1.1%). The Industrial Goods index closed flat.

Market Breadth Improves
Investor sentiment improved today as market breadth settled at 1.4x (from 1.0x yesterday) after 25 stocks advanced against 18 declining stocks. The best performing stocks today were WEMA (+9.1%), LAWUNION (+9.0%) and OANDO (+6.9%) while ASHAKACEM (-5.0%) GLAXOSMITH (-4.4%) and FIDSON (-4.2%) declined the most.  Today’s market performance was broadly driven by price appreciation in Oil & Gas Stocks following the decision by OPEC to put a cap on oil production volumes. We expect this positive momentum to be maintained in the interim.

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