Gains in the Nigerian bourse were extended into the second consecutive day of trading as bargain hunting persisted in value stocks in the Banking and Consumer Goods sectors which drove the broader index northwards. The All Share Index improved 1.5% to close at 23,686.67 points. The market performance was buoyed by gains in NIGERIAN BREWERIES (+8.1%), NESTLE (+5.0%) and ZENITH (+4.6%). Investors gained N120.9bn as market capitalization settled at N8.1tn. Activity level in the market strengthened as volume and value traded grew 96.3% and 130.1% to 476.1m units and N3.6bn respectively.
Mixed Performance across Sectors
Price appreciation in NIGERIAN BREWERIES (+8.1%) and NESTLE (+5.0%) buoyed the Consumer Goods index which appreciated the most (4.8%). Similarly, bargain hunting in value counters in the banking space -- FBNH (+10.3%) and ZENITH (+4.6%) drove the index 0.6% northwards. In contrast, the Insurance and Industrial Goods indices depreciated 0.9% and 0.7% respectively on account of sell offs in MANSARD (-5.0%) and WAPCO (-1.8%). The Oil & Gas index closed flat.
Sentiments Stay Positive
Positive sentiments in the market persisted today as investors took advantage of value stocks trading at attractive entry prices. Consequently market breadth was 2.0x as 28 stocks advanced while 14 declined. The best performing stocks were FBNH (+10.3%), UNION BANK (+9.9%) and NIGERIAN BREWERIES (+8.1%) while HONYFLOUR (-9.2%), STERLING BANK (-9.0%) and VITAFOAM (-8.0%) depreciated the most. Gains in the market today were softened compared to yesterday's performance and this may indicate some investors are already taking profit from yesterday's rally. Nevertheless, we note the sustained optimism in the Bourse as shown in the strong market breadth. Investors' horizon are generally short in periods of volatility hence we may anticipate further profit-taking in the session ahead. The effect of this on market sentiment may however be cushioned by domestic early bird investors speculating on a possible exchange rate adjustment by the CBN at the MPC meeting holding next week. We still view current prices -- especially in the Tier-1 Banking, Consumer &Industrial Goods sectors - as attractive for fundamental long-term investors.