Stock Market Rebounds

At the end of today’s trade, the All Share Index (ASI) closed positive, gaining 55bps while the YTD return improved to 32.7%. The major drivers of today’s performance were DANGCEM (+2.4%), NESTLE (+1.3%) and NIGERIAN BREWERIES (+0.3%) (ex-DANGCEM, market would have shed 17bps). Investors gained N70.0bn as market capitalization advanced to N12.3tn. Likewise, activity level rose as volume and value traded climbed 11.9% and 73.1% to N128.3m units and N2.7bn respectively.

Mixed Performance across Sectors
The Industrial Goods index led gainers, up 1.1% due to an uptick in DANGCEM (+2.4%). The Insurance index followed suit, closing 0.4% higher on account of price appreciation in CONTINSURE (+2.1%) and NEM (+3.6%) while the Consumer Goods index marginally rose 0.2% following positive sentiment towards NESTLE (+1.3%) and NIGERIAN BREWERIES (+0.3%). On the other hand, the Oil & Gas index fell 1.0% on the back of losses in OANDO (-5.0%) while the Banking index (-0.6%) was dragged by declines in ZENITH (-2.4%) and GUARANTY (-0.2%).

Investor Sentiment Wanes
Investor sentiment waned today as market breadth retreated to 0.7x (from 0.8x yesterday) after 15 stocks advanced against 22 decliners. At the top of gainers’ chart were OKOMUOIL (+5.7%), CILEASING (+4.4%) and AIRSERVICE (+4.0%) while NEIMETH (-8.4%), CONOIL (-5.0%) and UNILEVER (-5.0%) led losers. In line with our expectation, today’s market performance was largely driven by bargain hunting in market bellwethers. Hence, we expect the market to trade in similar trend tomorrow.