Stock Market Takes off Bullish

The Nigerian stock market began the year on a positive note as the benchmark index advanced 218bps to settle at 41,147.39 points on Monday, buoyed by  gains in BUACEMENT (+9.9%), GUARANTY (+3.6%) and WAPCO (+9.0%). Accordingly, the YTD return rose to 2.2% while market capitalisation increased by ₦458.4bn to settle at ₦21.5tn. Activity level  plunged as volume  and value traded dropped 70.2% and 86.0% to 211.9m units and ₦1.4bn respectively. The most traded stocks by volume were AIICO (87.5m units), FCMB (19.7m units) and TRANSCORP (12.8m units) while ZENITH (₦225.7m), WAPCO (₦223.0m) and GUARANTY (₦191.1m) led by value.

Bullish Sector Performance 

Sector performance was upbeat as 5 of 6 indices under our coverage gained save the AFR-ICT index which remained unchanged. The Industrial Goods and Insurance indices led gainers, advancing 4.7% and 4.4% respectively due to buying interest in BUACEMENT (+9.9%), WAPCO (+9.0%) and MANSARD (+9.5%). Similarly, the Banking and Consumer Goods indices were up by 3.7% and 1.4% in that order, driven by price appreciation in GUARANTY (+3.6%), ZENITH (+3.6) and INTBREW (+9.9%). Lastly, the Oil & Gas index rose marginally by 0.1% due to buying interest in ETERNA (+5.9%).

Investor Sentiment Improves

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 15.5x from the 0.7x recorded previously as 31 stocks advanced against 2 decliners. SOVRENIN (+10.0%), TRANSCORP (+10.0%) and HONEYFLOUR (+10.0%) were the best performing tickers while FCMB (-6.0%) and CAVERTON (-3.4%) were the only losers. We anticipate a sustained bullish performance in the next trading session.

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