Bullish Trend Extends into 2nd Consecutive Day

The renewed interest in Nigerian equities was sustained on Thursday as investors’ sentiment remained stoked by the recent announcement of the modalities for the operation of the new flexible FX market. Consequently, the All Share Index improved 2.1% to settle at 28,489.87points as YTD return was trimmed to -0.5%. Similarly, a total of N205.4bn was gained by investors as market capitalisation rose to N9.8tn. The major drivers of the positive performance today were NIGERIAN BREWERIES (+6.0%), ZENITH (+5.2%) and DANGCEM (+1.7%). Activity level strengthened as volume and value traded grew 5.1% and 55.6% to 618.2m units and N5.4bn respectively.

All Sectors Advance
For the second consecutive day, all sector indices trended northwards at the close of trade. The Banking index chaired sector gainers, advancing 3.1% on the back of gains in ZENITH (+5.2%) and GUARANTY (+3.6%). The Consumer Goods index also followed suit, up 2.8% on account of price appreciation in NIGERIAN BREWERIES (+6.0%) while the Industrial Goods index improved 2.2% against the backdrop of gains in DANGCEM (+1.7%). The Insurance and Oil & Gas indices closed out the positive performance, expanding 1.6% and 0.7% respectively.

Positive Sentiments Persist
Investors remained bullish on equities as seen in market breadth which settled at 2.1x as 32 stocks appreciated against 15 decliners. The top advancers today were CHAMPION (+9.9%), UNITYBNK (+8.3%) and WAPCO (+7.3%) while GLAXOSMITH (-9.7%), LEARNAFRCA (-4.1%) and NPFMCRFBK (-4.0%) led the losers’ list. We expect the positive performance in the market to persist till the end of the week, however we do not rule out the chance of some profit taking by investors.