Market Opens Week Bullish

The Nigerian Equities market opened the week on a positive note as the All Share Index (ASI) rose 0.5% to settle at 37,312.28 points, implying a YTD return of 38.8%. Accordingly, investors gained N66.5bn as the market capitalization of listed stocks settled at N12.9tn. Today’s positive performance was largely on the back of price appreciation in DANGCEM (+3.9%); ex- DANGCEM, market would have lost 1.0%. In the same vein, activity level improved today as volume and value traded surged 91.9% and 1034.6% to 336.3m units and N30.0bn respectively. The surge in activity is attributable to a cross deal of 128.5m shares of DANGCEM at N210.0 /share in a deal valued at N27.0bn.
Industrial Goods Index Leads Sector Performance
Sector performance was mixed as 3 of 5 indices closed the day’s trading session in the red. The Industrial Goods Index was the biggest gainer, up 2.1% due to buying interest in DANGCEM (+3.9%). Similarly, the Oil & Gas index followed, appreciating 0.9% on the back of gains in FORTE (+8.8%). On the contrary, the Banking Index shed the most, down 1.6% as investors' booked profit in the GUARANTY (-3.0%), UBA (-1.6%) and ZENITH (-0.6%). In the same vein, the Consumer Goods and Insurance indices closed lower, down 1.3% and 0.4% respectively due to losses in NIGERIAN BREWERIES (-3.4%) and CUSTODYN (-4.6%).
Market Breadth Turns Negative
Investor Sentiment as measured by market breadth (advancers/decliners) retreated to 0.6x from 1.1x recorded on Friday. The day’s top gainers were FORTE (+8.8%), OKOMUOIL (+4.6%) and NEM (+4.4%) while CILEASING (-4.8%), CAVERTON (-4.8%) and VITAFOAM (-4.7%) were the top losers. While we attribute today’s positive performance to price appreciation in market bellwether - DANGCEM, we re-iterate our medium term positive outlook on the stock market given the recent rally in global oil prices.