Local Bourse Extends Gain

The positive performance recorded yesterday was sustained on Wednesday as the All Share Index (ASI) advanced 25bps to settle at 36,622.85 points while YTD return expanded to 36.3%. Today’s performance was buoyed by gains in UBA (+3.3%), ZENITH (+1.2%) and SEPLAT (+2.1%). Consequently, market capitalization added N100.3bn to N12.7tn.  In the same vein, activity levels improved as volume and value traded surged 66.6% and 157.4% to settle at 333.0m units and N4.7bn respectively.

Banking Sector Index Leads Gainers
The Banking index emerged the top advancer, gaining 0.7% as investors took positions in UBA (+3.3%) and ZENITH (+1.2%). The Oil & Gas index trailed, up 0.4% owing to renewed sentiment on SEPLAT (+2.1%). Similarly, the Consumer Goods index marginally rose 0.1% on account of upticks in DANGSUGAR (+1.2%) and DANGFLOUR (+4.9%). On the contrary, the Insurance index dipped 1.2% as investors booked profit in MANSARD (-3.8%) and CONTINSURE (-3.0%) while the Industrial Goods index closed flat.  
Market Breadth Waxes Stronger
Following today’s performance, investor sentiment improved as reflected in the market breadth which expanded to 2.0x from 1.5x recorded in the previous session. The best performing stocks were FIDSON (+9.8%), CILEASING (+7.6%) and HONYFLOUR (+7.0%) while the worst performers were CUTIX (-9.4%), FORTE (-5.0%) and UPL (-5.0%).

Afrinvest analysts said today’s performance can be attributed to investors’ reaction to the released company results as well as bargain hunting. As observed in market breadth, investor sentiment should to remain positive as more 9M:2017 earnings trickle in.