Equities Market Extends Gain to Third Consecutive Day

The Nigerian equities market closed the week positive as the All Share Index (ASI) rose 45bps to settle at 38,522.14 points while YTD gain expanded to 43.3%. Accordingly, market capitalization grew by N61.0bn to N13.7tn. The positive close was majorly driven by price appreciations in DANGCEM (+0.8%), SEPLAT (+5.0%) and ACCESS (+3.0%). However, activity level was mixed as volume traded fell 52.4% to 204.5m units while value traded advanced 1.1% to N1.5bn.

Bullish Sector Performance
Performance across sectors was largely bullish as 4 of 5 indices closed in the green. The Oil & Gas index appreciated the most, up 2.6% due to price appreciation in SEPLAT (+5.0%). The Insurance index followed suit, adding 1.0% on the back of buy interest in NEM (+4.9%) and LINKASSURE (+4.6%). Similarly, the Industrial Goods and Banking indices rose 0.5% apiece as DANGCEM (+0.8%) and ACCESS (+3.0%) recorded gains. On the flipside, the Consumer Goods index was the lone loser, down 0.2% due to losses in UNILEVER (-7.3%) and NIGERIAN BREWERIES (-0.4%).

Market Breadth Improves
Market breadth (advancers/decliners ratio) which measures investor sentiment improved to 4.0x from 1.8x recorded yesterday as 24 stocks advanced against 6 stocks that declined. The top performing stocks were CADBURY (+10.2%), SEPLAT (+5.0%) and VITAFOAM (+5.0%) while UNILEVER (-7.3%), UPL (-5.0%) and NPFMCRFBK (-3.8%) were the worst performers. In the coming week, we anticipate a largely positive performance on the back of year-end portfolio rebalancing by fund managers.