The Nigerian bourse maintained the positive performance witnessed since the start of the week as the All Share Index (ASI) rose 38bps to close at 38,144.02 points. Consequently, Year-to-date gain improved to 41.9% while market capitalization added N49.8bn to settle at N13.2tn. Today’s positive performance was largely driven by sustained interest in Consumer Goods and Banking stocks including NESTLE (+3.9%), GUINNESS (+10.2%) and GUARANTY (+0.8%). Similarly, activity level increased as volume and value traded rose 50.6% and 20.3% to 328.7m units and N6.1bn respectively.
Bullish Sentiment across Sectors
Sector performance was largely bullish as all indices closed in the green save for the Industrial Goods index which closed flattish. The Consumer Goods index led gainers with a 1.5% appreciation due to buy sentiment in NESTLE (+3.9%) and GUINNESS (+10.2%) while the Insurance index followed, nudging 0.3% higher as a result of bargain hunting in MANSARD (+5.0%). Likewise, the Banking index marginally climbed 0.1% on account of gains in GUARANTY (+0.8%) and ACCESS (+2.3%) whilst OANDO (+1.3%) drove the Oil & Gas index to close 1bps higher.
Investor Sentiment Wanes
Investor sentiment as measured by market breadth (advancers/decliners’ ratio) waned to 0.9x (from 1.5x recorded yesterday) after 20 stocks advanced against 23 decliners. Today’s best performing stocks were GUINNESS (+10.2%), NAHCO (+10.0%) and DANGFLOUR (+9.5%) while the worst performers were CHAMPION (-9.3%), LIVESTOCK (-5.0%) and CONOIL (-5.0%). The moderation in market breadth suggests that some investors are possibly taking profit on stocks which had appreciated in prior sessions. However, we do not expect a market correction in the short term as general investor sentiment remains strong on the back of improving confidence in CBN’s foreign exchange policy and a strong earnings season.