Stock Market Sustains Momentum

The Nigerian Equities market continued its positive performance today as the All Share Index gained 34bps to close at 37,138.97 points while YTD return expanded to 38.2%.  In turn, investors gained N43.4bn as market capitalization settled at N12.9tn. Today’s performance was buoyed by gains in DANGCEM (+0.9%), INTBREW (+10.2%) and FBNH (+1.7%). However, activity level softened as volume and value traded fell 36.6% and 37.8% to close at 193.5m units and N1.8bn respectively.

Mixed Sector Performance
Performance across sectors was mixed as 2 indices trended northwards, 2 closed in the red and the other flat. The Industrial Goods index emerged the top gainer, up 0.5% due to sustained buying interest in DANGCEM (+0.9%). Likewise, the Consumer Goods index added 0.4% on account of gains in INTBREW (+10.2%) and NASCON (+3.0%). On the flip side, the Banking index lost 0.2% following profit taking in ZENITH (-0.9%) and ACCESS (-0.9%), while losses in LINKASSURE (-3.9%) dragged the Insurance index 0.1% lower. The Oil & Gas index closed flat.

Investor Sentiment Weakens
Investor sentiment weakened today as market breadth (advancers/decliners ratio) declined to 0.9x from 1.3x recorded in the previous session. Today’s best performing stocks were INTBREW (+10.2%), LEARNAFRICA (+5.0%) and CAVERTON (+5.0%) while the worst performers were UAC-PROP ( -4.7%), LAWUNION (-4.4%) and LINKASSURE (-3.9%). Despite the weaker investor sentiment recorded today, market performance stayed positive in line with our expectations. We expect a rebound in sentiment in consequent trading sessions as investors continue to seek bargain opportunities in the market.