Market Extends Winning Run

The Nigerian equities market sustained uptrend as the All Share Index appreciated 0.1% to close at 25,923.77 points. Market capitalization in turn increased N18.8bn closing at N8.9tn. Thus, YTD loss further eased to 9.5%. Today’s positive performance was on account of late rally in Industrial Goods blue-chip stock, DANGCEM (+0.6%) despite declines in NIGERIAN BREWERIES (-0.5%) and NESTLE (-2.1%) – both Consumer Goods bellwethers. Activity level strengthened as volume and value traded both grew 0.5% to close at 310.7m units and N2.1bn respectively.

Consumer Goods Index, Lone Sector Laggard
The Oil & Gas index topped sector gainers due to rally in OANDO (+9.5%). The Industrial Goods and Insurance indices trailed closely, up 0.2% apiece on account of price appreciations in DANGCEM (+0.6%) and NEM (+1.3%). Also, the Banking index rose 4bps on gains in GUARANTY (+0.1%). On the flipside, profit taking in NIGERIAN BREWERIES (-0.5%) and NESTLE (-2.1%) dragged the Consumer Goods index 0.5% lower.

Market Breadth Eases to 1.3x
Market sustained positive sentiments today as market breadth - advancers/decliners ratio - settled at 1.3x (against 2.2x yesterday). A total of 19 stocks advanced against 15 declining stocks. TIGERBRAND (+10.2%), OANDO (+9.7%) and HONEYFLOUR (+7.9%) led the gainers while AGLEVENT (-5.0%), CAVERTON (-5.0%) and UBN (-4.9%) topped the losers’ chart.  We believe anticipated better-than-expected earnings releases would continue to spur bargain hunting although profiting taking activities may moderate market momentum. We maintain that investors buy into companies with consistent dividend payment history ahead of their earnings releases.