The positive run in the local bourse extended to the 3rd trading session as the All Share Index (ASI) rose 56bps to settle at 36,880.20 points while YTD return expanded to 37.3%. In the same vein, market capitalization increased by N71.6bn to N12.8tn. Today’s positive performance can be broadly attributed to gains in DANGCEM (+1.6%%), ZENITH (+1.5%) and FBNH (+5.0%). However, activity level was mixed as volume traded declined 3.8% to 249.3m units while value traded spiked 70.3% to N5.2bn.
Bullish Performance across Sectors
Performance across sectors was bullish as all sector indices closed in the green. The Industrial Goods index led gainers, up 0.9% on the back of gains in DANGCEM (+1.6%) and WAPCO (+0.1%). The Oil & Gas index followed, rising 0.4% due to price appreciation in MOBIL (+3.9%), while the Banking and Insurance indices each climbed 0.2% as investors took positions in ZENITH (+1.5%), FIDELITY (+1.3%), NEM (+4.0%) and AIICO (+3.9%). The Consumer Goods index marginally added 1bp, propped by buying interest in DANGSUGAR (+1.5%) and FLOURMILL (+1.9%).
Market Breadth Improves
Market breadth (advancers/decliners ratio) which measures investor sentiment strengthened to 1.0x (from 0.9x the previous day) with 22 stocks advancing relative to 21 stocks that declined. The top performers were BERGER (+5.0%), FBNH (+5.0%) and PRESCO (+5.0%) while the worst performers were AIRSERVICE (-4.9%), VITAFOAM (-4.0%) and NASCON (-4.0%). The positive performance in the Bourse this week comes amidst an oil price rally which has taken Brent Crude to US$61.15/b as of writing - 43.8% above 2017 budget benchmark. We expect the gains in the oil market to further support banks asset quality metrics and fiscal balance, aid the economic recovery and strengthen the case for staying invested in Nigerian assets.