Bargain Hunting in Large-caps Drive Index Higher

The equities market recorded gains on Tuesday as the NSE-ASI was up 15bps to close at 28,857.34 points while the market capitalization grew by N15.0bn to settle at N9.9tn. This was mostly inspired by buying interest in NIGERIAN BREWERIES (+2.9%), ZENITH (+3.4%) and ACCESS (+3.7%). Market activity was mixed as volume traded decreased 24.6% while value increased 5.8% to settle at 207.6m units and N3.6bn respectively.
 
Mixed Performance Across Sectors
Performance across sectors was mixed as the Banking, Consumer Goods, and Industrial Goods indices were up 1.0%, 0.9% and 0.6% respectively following gains in ZENITH (+3.4%), NIGERIAN BREWERIES (+2.9%) and WAPCO (+1.7%) and respectively. While the Insurance and Oil & Gas indices weakened 1.3% and 2.6% respectively on account of losses in FORTE (-5.0%) and CONTINSURE (-1.8%).
 
Investor Sentiment remains Soft
Sentiment stayed soft as market breadth closed at 0.4x (slightly lower than 0.5x on Monday). A total of 15 stocks gained while 39 declined. NAHCO (+4.9%), FIDELITY (+4.4%) and AIICO (+4.1%) led the advancers whilst GLAXOSMITH (-9.7%), SKYE (-7.6%) and TRANSEXPRESS (-7.3%) topped the decliners’ chart. We are of the view that today’s upward trend was majorly driven by bargain hunting in NIGERIAN BREWERIES (+2.9%) and key banking stocks. We expect a positive performance tomorrow albeit marginal as investors position in value counters ahead of earnings season.

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