Nigerian Equities Market Remains Upbeat

The Nigerian equities market sustained its upbeat performance in today’s session as the benchmark index climbed 0.6% to close at 32,827.98 points, further pushing YTD gain to 22.2%. Today’s performance was largely driven by positive sentiment towards DANGCEM (+0.6%) and NIGERIAN BREWERIES (+0.8%) as well as sustained interest in banking stocks – GUARANTY (+2.6%), ZENITH (+3.3%) and ACCESS (+2.3%). Consequently, investors accumulated N73.5bn as market capitalization rose to N11.3tn. Also, market activity improved as volume and value traded rose 20.2% and 3.8% to 218.8m units and N2.1bn respectively.

Positive Performance across Sectors
Performance across sectors was positive as all indices trended northwards. The Banking index advanced the most, up 2.0% on the back of sustained interest in GUARANTY (+2.6%) and ZENITH (+3.3%) while uptick in CONTINSURE (+2.9%) and LINKASSURE (+3.5%) pushed the Insurance index 0.6% higher. Similarly, the Industrial and Consumer Goods indices climbed 0.3% and 0.2% due to sustained interest in DANGCEM (+0.6%) and NIGERIAN BREWERIES (+0.8%) respectively while the Oil & Gas index inched 3bps higher following price appreciation in OANDO (+4.4%).

Market Sentiment Wanes
Market sentiment as mirrored by the market breadth declined to 1.2x (from 1.6x recorded yesterday) - 24 stocks advanced while 19 stocks declined. At the summit of the gainers’ chart were NEIMETH (+9.4%), VITAFOAM (+5.4%) and OKOMUOIL (+5.0%) while UBN (-6.3%), PRESCO (-5.0%) and CADBURY (-4.9%) led the losers’ chart.  Whilst the reduction in market breadth is suggestive of softer sentiment towards equities, we expect investors to take position in value stocks in subsequent sessions in anticipation of positive half year corporate releases.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, four counters traded - WAMCO, IGI, CSCS and NDEP - with total volume and value of transactions closing at 13,700 units and N1.2m respectively. NDEP accounted for 68.6% of total volume traded, followed by CSCS (18.2%).