Equities Extend Gains

At the close of trading on Tuesday, the All Share Index rose 0.3% to close at 27,389.02 points, while YTD loss settled at -4.4%. Consequently, investors gained N24.9bn as market capitalization increased to N9.4tn. Today’s performance was driven by gains in GUARANTY (+1.8%), NIGERIAN BREWERIES (+1.1%), ZENITH (+1.7%) and UBA (+3.1%). Market activity also strengthened as volume and value traded improved 10.0% and 8.8% to settle at 235.8m units and N2.2bn respectively.

All Sector Indicators Close Higher
All sector indices advanced, save for the Industrial Goods index which closed flat. The Banking index led the list of gainers, up 0.9% due to buying interest in STERLNBANK (+4.0%), UBA (+3.1%), GUARANTY (+1.8%) and ZENITH (+1.7%). Also, the Consumer Goods index closed 0.4% higher, driven by gains in NIGERIAN BREWERIES (+1.1%), CADBURY (+0.7%) and NASCON (+0.5%). The Oil & Gas index appreciated 0.2% on account of gains in TOTAL (+3.3%). The Insurance index was up 4bps, due to sole gains in CONTINSURE (+3.3%).
 
Sentiments Improve
Sentiments in the market strengthened today as reflected in the market breadth which improved to 0.8x consequent on 15 stocks that appreciated against 18 decliners. The best performing stocks today were LIVESTOCK (+5.6%), STERLNBANK (+4.0%), TOTAL (+3.3%) and UBA (+3.1%) while CHAMPION (-8.1%), NPFMCRFKB (-5.0%), AFRIPRUD (-4.9%) and CONOIL (-4.9%) were the worst performers. We expect the market to trade southwards in the upcoming sessions, as profit taking may set in following consecutive days of uptrend.

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