Bulls Retain Hold at the Exchange

The Nigerian equities market extended gains today, as the Benchmark index rose 1.1% to close at 27,900.44 points whilst YTD return increased to 3.8%. Likewise, market capitalization added N100.5bn to settle at N9.6tn. The positive performance recorded today was majorly driven by appreciation in GUARANTY (+4.1%), NIGERIAN BREWERIES (+2.1%) and NESTLE (+3.1%). Contrarily, market activity weakened today as volume and value traded fell 34.7% and 47.8% to 371.5m units and N3.5bn respectively whilst total number of deals fell to 3,910 (from 4,632 yesterday).
 
Positive Performance across Sectors
Performance across sectors was overwhelmingly bullish as all sector indices trended northwards save for the Industrial Goods index which closed flat. The Consumer Goods index (+2.0%) emerged the best performing index on the back of appreciation in NIGERIAN BREWERIES (+2.1%) and NESTLE (+3.1%). The Banking index followed suit with a 1.7% appreciation as a result of gains in GUARANTY (+4.1%), ETI (+3.7%) and ACCESS (+2.9%) whilst OANDO (+9.9%) also drove the Oil & Gas index 1.6% northwards. Similarly, the Insurance index increased 4bps as price appreciation in LINKASSURE (+7.4%), NEM (+2.2%) and CONTINSURE (+0.8%) offset the impact of the depreciation in LAWUNION (-4.8%).
 
Investor Sentiment Waxes Stronger
Investor sentiment further strengthened today as reflected in the improved market breadth (advancers/decliners ratio) which rose to 1.8x from 1.5x yesterday on the back of 24 advancing stocks against 13 decliners. OANDO (+9.9%), MAYBAKER (+9.8%) and LINKASSURE (+7.4%) led the gainers while CILEASING (-8.2%), LAWUNION (-4.8%) and LIVESTOCK (-4.7%) led the laggards. As opined in our previous report, the bullish sentiment was sustained in today’s trading session as investor sentiment continues to be boosted by gains recorded in FX management. We believe the improvements recorded in the FX market which had hitherto been discouraging the inflow of FPIs will unlock more value for equity investors.
 
NASD OTC Exchange Market Activities
In the NASD OTC exchange, only WAMCO (-9.0%) traded today. Total volume and value traded settled at 12,635 units and N1.6m respectively.

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