Stock Market in Green Despite Weak Sentiment

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.