The All Share Index rose 63bps to close at 25,409.06 at the end of Thursday’s trading session as the Nigerian Bourse shook off yesterday’s marginal decline. Similarly, market capitalization increased N55.1bn to settle at N8.8tn. Today’s positive performance was broadly driven by sustained momentum in NIGERIAN BREWERIES (+3.1%) and renewed appetite for GUARANTY (+3.9%). Market activity was however mixed as volume traded rose 23.9% to 146.7m units while value traded fell 2.5% to N1.8bn in 2,563 deals.
Positive Performance across Sectors
All sector indices trended northward save for the Insurance index which closed flat. The Banking Index rose 1.4% as a result of renewed appetite in GUARANTY (+3.9%) and UBA (+3.2%). Similarly, the Consumer Goods index inched 1.4% higher on the back of sustained bullish sentiment for NIGERIAN BREWERIES (+3.1%) and GUINNESS (+4.8%), whilst MOBIL (+3.3%) drove the Oil & Gas index (+0.3%) to a positive close. In the same vein, the Industrial Goods index gained 5bps owing to bargain hunting in CCNN (+3.1%)
Investor Sentiment Strengthens
Investor sentiment strengthened today as market breadth (advancers/decliners ratio) improved – albeit still in the negative region – to 0.9x (from 0.4x yesterday). BERGER (+4.9%), GUINNESS (+4.8%) and NPFMICROFINANCE (+4.5%) led the gainers while UNILEVER (-5.0%), UACN (-5.0%) and UAC-PROP (-4.7%) led the laggards. The relatively cheap valuation of some value counters that have been beaten in previous trading sessions suggests an attractive entry opportunity for short term traders and long-term investors. With the benchmark index now above the oversold region following today’s rally, we expect a soft performance in subsequent trading sessions.
NASD OTC Exchange Market Activities
In the NASD OTC exchange, only FRIESLAND WAMPCO traded during today’s trading session. Total volume and value traded stood at 5,000 units and N675, 000.00 respectively at the end of trade.