The domestic equities market began trading this week with an 8bps gain as the benchmark index advanced to 40,150.78 points. The positive performance was driven by buying interest in ZENITH (+0.8%), INTBREW (+2.5%) and FLOURMILL (+2.8%). Consequently, the YTD return improved to -0.3% while market capitalisation advanced by ₦16.0bn to settle at ₦21.2tn. Activity level varied as volume traded rose marginally by 0.7% to 335.7m units while value traded fell 31.8% to ₦2.5bn. The most traded stocks by volume were MBENEFIT (104.2m units), MANSARD (24.3m units) and WAPCO (14.4m units) while OKOMUOIL (₦462.8m), ZENITH (₦344.7m) and WAPCO (₦320.5m) topped by value.
Positive Sector Performance
Performance across sectors was bullish as 3 of 6 indices under our coverage gained, 1 lost and both the AFR-ICT and Industrial Goods indices closed flat. The Insurance index was the lone loser, down 0.7% due to sell-offs in MANSARD (-3.4%) and LINKASSURE (-4.7%). On the flip side, the Oil & Gas index led gainers, up 5.7% due to buying interest in ARDOVA (+9.8%) and OANDO (+4.2%). Similarly, the Consumer Goods and Banking indices rose 0.5% and 0.2% respectively, buoyed by price appreciation in INTBREW (+2.5%), FLOURMILL (+2.8%), ZENITH (+0.8%), and ACCESS (+0.6%).
Investor Sentiment Wanes
Investor sentiment as measured by market breadth (advance/decline ratio) fell to 1.1x from then 3.5x recorded previously as 27 stocks advanced against 24 decliners. ARDOVA (+9.8%), MAYBAKER (+9.8%) and BERGER (+9.5%) were the best-performing tickers while CUTIX (-10.0%), BOCGAS (-10.0%) and CAVERTON (-7.1%) were the losers. We anticipate that bargain hunting activities would dominate trading this week.