Stock Market Sustains Bullish Trend

The bullish performance recorded yesterday was sustained today as the All Share Index (ASI) advanced 0.3% to settle at 25,818.87 points, while YTD loss pared to 3.9%. The 2-day rally in equities continues to be fueled by investors’ reaction to recently released earnings result, with the benchmark index buoyed by persistent buy sentiment in STANBIC (+3.8%), GUARANTY (+0.9%) and MOBIL (+4.9%) while market capitalization improved N25.0bn to settle at N8.9tn. However, activity level waned as volume and value traded fell 39.8% and 35.5% to 127.4m units and N909.3m respectively.

Consumer Goods Index, Lone decliner
All sector indices closed in the green, save for the Consumer Goods index which slid 0.2% following price decline in NIGERIAN BREWERIES (-0.4%). The Oil & Gas index led sector gainers, improving 1.1% on the back of price appreciation in MOBIIL (+4.9%) and OANDO (+1.3%). Similarly, buy interest in WAPCO (+1.6%) persisted today, driving the Industrial Goods index 0.7% northwards. In the same vein, the Banking and Insurance indices grew 0.3% and 0.2% on account of gains in STANBIC (+3.8%), GUARANTY (+0.8%) and NEM (+5.0%).

Investor Sentiment Remains Positive
Investor sentiment improved further as market breadth stood at 1.9x (from 1.5x recorded yesterday) consequent on 23 advancers against 12 decliners. The Gainers’ chart was topped by ASHAKACEM (+10.2%), UACPROP (+9.7%) and FIDSON (+9.4%) while CHAMPION (-4.9%), LEARNAFRCA (-4.7%) and LIVESTOCK (-4.6%) led the list of laggards. We opine that market performance in the interim will remain broadly driven by Q1:2017 scorecards of corporates as well as investors’ perception of the effectiveness, price-discovery mechanism and liquidity of the newly opened FX window for autonomous players in the FX market.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, total volume and value traded increased 10.5% and 0.8% to 67,650 units and N8.9m respectively. Only 5 counters traded today; WAMCO (-4.2%) was the only decliner while others closed flat. 

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