Stock Market Remains Bullish

The Nigerian equities market continued its bullish run, albeit at a slower pace as the benchmark index closed in the green for the 5th consecutive trading session. The NSE ASI rose 7bps to close on Monday at 25,671.55 points whilst YTD return held steady at -4.5%. Similarly, market capitalization improved N3.9bn to settle at N8.9tn. Today’s marginal uptrend was largely driven by the appreciation in GUARANTY (+3.2%), NESTLE (2.7%) and MOBIL (+5.0%) which more than offset the impact of the decline in DANGCEM (-0.6%), GUINNESS (-5.0%), ZENITH (-0.9%) and ACCESS (-2.2%). In the same vein, market activity improved as volume and value traded surged 227.1% and 37.2% to close at 495.2m units and N2.5bn respectively in 2,587 deals.
DANGCEM Drags Industrial Goods Index
Performance across sectors was largely bullish with all sector indices trending northwards save for the Industrial Goods index (-0.3%) which was dragged by the 0.6% decline in DANGCEM. The Oil & Gas index led sector gainers on the back of appreciation in MOBIL (+5.0%) and OANDO (+1.0%) whilst the Banking index (+0.9%) closely trailed as uptrend in GUARANTY (+3.2%) and ETI (+1.0%) offset the impact of selloffs in ZENITH (-0.9%), ACCESS (-2.2%) and UBA (-0.6%). Similarly, the Consumer Goods index (+0.4%) closed in the green on the back of NESTLE (+2.7%) and DANGFLOUR (+2.5%). The Insurance index however closed flat.
Investor Sentiment Weakens
Investor sentiment weakened today as market breadth (advancers/decliners ratio) fell to 0.6x (from 1.2x on Friday) on the back of 13 advancing stocks against 22 decliners. NAHCO (+5.0%), MOBIL (+5.0%) and FIDSON (+4.5%) led the gainers while UCAP (-5.0%), GUINNESS (-5.0%) and CUSTODIAN (-5.0%) led the laggards. Market performance remains driven by speculation as investors cherry pick value stocks with attractive entry prices. However, a weaker market breadth suggests that investors may take profit in subsequent trading sessions.
NASD OTC Exchange Market Activities
In the NASD OTC exchange, WAMCO Plc closed at N130.01 (down 2pbs) and recorded the most activity with volume and value traded settling at 44,028 units and N5.8m respectively.