Nigerian Bourse Opens on a Bullish Note

The Nigerian stock market started the week on a bullish note as the All Share Index (ASI) advanced 0.6% at the end of the trading session today to close at 27,817.00 points. Investors gained N55.5bn as market capitalization settled at N9.5tn. The bullish performance can be attributed to gains in blue chip Consumer Goods and Banking stocks - NIGERIAN BREWERIES (+1.4%), GUARANTY (+1.6%), UBA (+5.5%) and NESTLE (+1.2%). Market activity was mixed as volume traded declined 31.3% and value traded appreciated 2.1% to settle at 216.2m units and N2.8bn respectively.

All Sector Indices Close Green Save for Industrial Goods
Performance across sectors was broadly bullish as the Banking and Oil & Gas indices gained 1.3% and 1.0% respectively to lead other advancers. The Banking index gained on account of bullish sentiment in Tier-1 Banks – GUARANTY (+1.6%), UBA (+5.5%) and ACCESS (+4.6%) - while the Oil & Gas Index appreciated on the back of bargain hunting in ETERNA (+4.8%) and SEPLAT (+2.1%). Likewise, the Consumer Goods and Insurance indices appreciated 0.9% and 0.1% respectively on the back of positive sentiment on INTBREW (+3.3%), NIGERIAN BREWERIES (+1.4%) and AIICO (+4.8%). The Industrial  Goods index closed flat.

Investor Sentiment Strengthens
Investor sentiment improved today as market breadth rose to 1.8x (from 1.1x on Friday) as 20 stocks advanced against 11 which declined. The best performing stocks today were TRANSCORP (+7.6%), UBA (+5.5%) and ETERNA (+4.8%) while AGLEVENT (-10.1%), 7UP (-4.6%) and LIVESTOCK (-4.3%) were the worst performers. Today’s bullish performance can be accredited to bargain hunting and recently released audited financials of ACCESS and GUARANTY which has strengthened investors’ appetite for banking tickers – especially in the Tier-1 segment. Consequent on strong gains recorded in the last two trading sessions, we expect some forms of profit taking in the session ahead.