Market Defies Industrial Action …NSE ASI up 0.4%

Despite concerns surrounding the NLC strike, the Nigerian equities market rebounded today as the All Share Index improved 0.4% to settle at 26,763.86 points. Also, market capitalisation rose by N37.3bn to N9.2tn. Price appreciation in bellwethers such as ZENITH (+4.0%), GUARANTY (+2.7%) and NIGERIAN BREWERIES (+2.0%) buoyed performance. Activity level was mixed as volume traded surged 69.4% to 670.8m units while value traded fell 22.6% to N2.1bn respectively.

Mixed Performance across Sectors
Performance was mixed across sectors as 2 sector indices advanced while 3 declined. The Banking index chaired sector gainers, improving 1.7% on account of gains in ZENITH (+4.0%) and GUARANTY (+2.7%). Similarly, the Consumer Goods index trended further northwards, up 0.4% following a sustained rally in NIGERIAN BREWERIES (+2.0%). On the flipside, the Oil & Gas index declined the most, losing 0.4% on the back of losses in OANDO (-3.1%) and FORTE (-0.2%). The Insurance and Industrial goods indices also depreciated 0.4% and 0.3% respectively.
Sentiments remain Soft
Sentiments in the market improved today, though still soft as 22 stocks advanced while 23 declined, leading to a market breadth (advancers/decliners ratio) of 0.9x. The top gaining stocks were AFRIPRUD (+5.0%), UAC-PROP (+4.5%) and ZENITH (+4.0%) while TIGERBRANDS (-9.7%), SKYE (-6.8%) and CHAMPION (-5.4%) recorded the highest losses. Today’s uptrend was majorly driven by a renewed appetite for banking stocks, with 10 of the 15 listed tickers in the sector trending northwards as investors bet on attractive pricing. We advise investors to maintain positions in value stocks.