Market Halts Bearish Run, Up 0.7%

The Nigerian Bourse rebounded from a 3-day losing streak Thursday as the All Share Index rose 0.7% to close at 27,284.83 points whilst market capitalization settled at N9.4tn, up N64.1bn. Today’s performance was largely buoyed by bargain hunting in NESTLE (+9.0%), FBNH (+0.8%), GUARANTY (+1.1%) and ZENITH (+0.7%).  However, market activity was mixed as volume traded dropped 0.3% while value traded inched 0.3% higher to close at 182.4m units and N1.6bn respectively.
 
NESTLE’s Performance Pushes Consumer Goods Index Northward
All the sector indices appreciated save for the Industrial Goods index which slipped 1bp at the end of today’s trading session. The Consumer Goods index rose 1.7% as a 9.0% surge in NESTLE neutralized the impact of the depreciation in NIGERIAN BREWERIES (-1.1%) and CADBURY (-5.0%). Similarly, the Banking and Insurance indices improved 1.0% and 0.5% on the back of the uptrend in GUARANTY (+1.1%), ZENITH (+0.7%), CONTINUSURE (+3.8%), CUSTODIAN (+1.5%) and NEM (+4.5%). The Oil & Gas index retained the week-long run in the green zone as a result of the price appreciation in TOTAL (+5.0%).
 
Market Breadth Strengthens
Investor sentiment also strengthened today as Market breadth (advancers/decliners ratio) improved to 1.1x (from 0.6x yesterday), owing to 18 advancing stocks against 17 declining stocks. UNITYBNK (+9.1%), NESTLE (+9.0%) and TOTAL (+5.0%) led the top gainers while REDSTAREX, CADBURY (-5.0% apiece) and HONYFLOUR (-2.9%) led the laggards. As opined in Yesterday’s report, Today’s performance was largely in line with expectation as investors hunted for bargains. We anticipate this momentum to be sustained tomorrow.

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