Stock Market Reverses 4-Day Bearish Run

The domestic bourse reversed a 4-day bearish run today as the All Share Index gained 1.7% - the highest this month - to close at 41,504.51 points while YTD return expanded to 8.5%. Today’s bullish performance was largely driven by upticks in DANGCEM (+2.8%), GUARANTY (+4.6%) and NESTLE (+2.9%). Accordingly, investors gained N252.9bn in value as market capitalisation strengthened to N15.0tn.  Activity level was mixed as volume traded fell 49.4% to 270.6m units while value traded rose 1.6% to close at N3.7bn. ZENITH (45.3m), SKYE (33.9m) and UBA (22.5m) were the most traded stocks by volume while  ZENITH (N1.4bn), GUARANTY (N345.6m) and UBA (N263.5m) were the most traded stocks by value.

Bullish Sector Performance
Performance across sectors was largely bullish as 3 of 5 indices trended northwards, while 2 closed in the red. The Banking index advanced the most, inching 1.7% higher following gains in GUARANTY (+4.6%), UBA (+2.2%) and UBN (+4.7%). The Consumer Goods index also closed in the green up 1.6%, buoyed by buying interest in NESTLE (+3.0%), NIGERIAN BREWERIES (+1.6%), and DANGSUGAR (+3.6%). Following Closely was the Oil and Gas index which inched 1.5% higher due to gains in TOTAL (+4.5%), MOBIL (+5.0%) and FORTE (+0.2%). On the other hand, the Insurance index led laggards, down 1.5% following price depreciation in MANSARD (-4.7%), and AIICO (-4.6%) while the Industrial Goods index fell 0.2% on the back of losses in WAPCO (-2.4%) and CCNN (-4.8%).

Investor Sentiment Strengthens
Investor sentiment measured by market breath (advance/decline) ratio improved to 0.9x from 0.6x recorded in the preceding session as 23 stocks advanced relative to 27 stocks that declined. The top performing stocks were CUSTODIAN (+10.0%), FIDELITY (+8.1%) and WEMA (+6.5%) while CILEASING (-9.5%), JAPAULOIL (-9.2%) and CHAMPION (-7.0%) were the least performing stocks. In line with expectation, there was a rebound in market performance at the close of the trading week following bargain hunting in blue chip stocks that had previously declined. Hence, our anticipation of improved buying sentiment to buoy performance in the near term remains.