Bargain Hunting Drives Benchmark Index Higher

The equities market rebounded at the end of Wednesday’s trade as the All Share Index (ASI) expanded 15bps to close at 35,358.6 points while YTD return increased to 31.6%. ZENITH (+1.6%), UBA (+2.4%) and STANBIC (+1.2%) were the major drivers of today’s performance. However, activity level softened as volume and value traded fell 72.6% and 53.0% to 174.1m units and N2.7bn respectively.

Mixed Performance across Sectors
Sector performance was largely mixed as 3 of 5 indices closed in the green. The Banking index led gainers, up 0.6% on the back of price appreciation in ZENITH (+1.6%) and UBA (+2.4%). In the same way, upticks in TOTAL (+1.9%) nudged the Oil & Gas index to close 0.2% higher while the Consumer Goods index closed 3bps higher. On the contrary, the Insurance index was dragged 0.6% southwards following losses in CONTINSURE (-4.7%). The Industrial Goods index closed the day flat.

Investor Sentiment Strengthens
Investor sentiment strengthened as market breadth (advancers/decliners’ ratio) improved to 1.2x from 0.9x recorded yesterday after 19 stocks advanced against 16 decliners. The best performing stocks were CILEASING (+9.5%), NASCON (+5.0%) and VITAFOAM (+4.8%) while the worst performers were MRS (-5.0%), CONTINSURE (-4.7%) and LEARNAFRICA (-3.8%). In subsequent session, we anticipate similar market performance as investors await Q3:2017 earnings scorecards.

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