Market Bucks 2-Day Losing Streak

The Nigerian equities market bucked a 2-day downtrend at the close of trade on Tuesday as the All Share Index (ASI) appreciated 2.5% to close at 36,720.62 points while YTD gain improved to 36.6%. In the same vein, market capitalization increased by N302.1bn to close at N12.7tn. Today’s positive performance was bolstered by rebound in DANGCEM (+7.3%) in addition to gains in some Large and Mid- Cap stocks including NESTLE (+2.1%), STANBIC (+3.0%) and DANGSUGAR (+5.2%). However, activity level on the exchange surged as volume and value traded rose 73.3% and 1686.0% to 849.6m units and N94.0bn respectively. This was due to an off-market cross of 416.0m units of DANGCEM in 6 deals valued at N87.4bn.

Oil & Gas Index Emerges Lone Decliner
Sector performance was broadly bullish as all indices closed in the green save for the Oil & Gas index which slid 1.3% due to investor reaction to FORTE’s (-7.6%) half year earnings reported yesterday and profit taking in OANDO (-2.3%). The Industrial Goods index led gainers with a 1.7% return following price appreciation in DANGCEM (+7.3%) which offset the decline in WAPCO (-4.7%). Similarly, the Insurance and Consumer Goods indices climbed 1.2% apiece due to gains in MANSARD (+4.8%) and NESTLE (+2.1%) respectively. Likewise, the Banking index improved 20bps on account of gains in UBA (+1.9%) and ZENITH (+0.2%)
Investor Sentiment Improves
Investor sentiment strengthened as market breadth (advancers/decliner’s ratio) rose to 1.6x from yesterday’s close of 0.8x after 32 stocks advanced against 20 decliners. LINKASSURE (+9.8%), NASCON (+8.0%) and DANGCEM (+7.3%) led the gainers’ chart while MORISON (-9.2%), FORTE (-7.6%) and ETERNA (-5.3%) were the worst performers. Whilst today’s performance is largely attributable to DANGCEM, ex-DANGCEM the market would have still closed in the green. Furthermore, the improvement in market breadth suggests the equities market may be poised for more positive returns given the unreleased corporate reports – especially for the Tier-1 Lenders - which are expected to be positive.