In Leaps and Bounds, Equities Extend Gains

The gaining streak in the Nigerian equities market stretched to the third consecutive day as persistent buying interest kept the market soaring. The All Share Index advanced 3.1% to 31,071.25 points on Thursday propping up YTD return to +8.5%. A total of N324.0bn was gained by investors as market capitalisation rose to N10.7tn. Market performance was characterised by a general buying interest across board, however, the major movers of the market today were DANGCEM (+5.0%), GUARANTY (+4.4%) and NIGERIAN BREWERIES (+4.0%). Nonetheless, Activity level waned as volume and value traded fell 16.9% and 28.0% to 450.5m units and N5.7bn respectively.

All Sector Indices Trend Higher
All sector indices closed higher on bullish investor sentiments. The Consumer Goods index appreciated the most, up 3.3% on the back of gains in NIGERIAN BREWERIES (+4.0%) and NESTLE (+2.8%) followed by the Industrial Goods index which rose 2.9% consequent on price appreciation in DANGCEM (+5.0%). Buy sentiment in the Banking sector persisted, especially in the Tier 1 banks – GUARANTY (+4.4%) and ZENITH (+2.2%) - driving the index 2.3% northwards. In the same vein, the Oil & Gas and Insurance indices added points, appreciating 1.0% and 0.7% respectively.

Buy Sentiment Prevails
Investor sentiments further strengthened as reflected in market breadth (Advancers/Decliners Ratio) which improved to 3.1x from (1.9x yesterday) as 37 stocks advanced against 12 declining stocks. The best performing stocks today were GLAXOSMITH (+10.2%), CHAMPION (+10.1%) and TRANSCORP (+9.6%) while NPFMCRFBK (-4.9%), CAP (-4.0%) and DEAPCAP (-3.8%) were the worst performing stocks. With three consecutive days of massive gains, there is an increased likelihood of some end of the week profit taking.