Local Bourse Maintains Positive Performance

The positive performance recorded in the local bourse yesterday, was extended today as the All Share Index grew 1.1% to 38,350.64 points while YTD gain advanced to 42.7%. As a result, investors gained N148.3bn in value as market capitalization increased to N13.6tn. Today’s performance can be largely attributed to buy interest in DANGCEM (+3.9%). However, activity level was mixed as volume traded surged 106.5% to 429.4m units while value traded declined 55.3% to N1.5bn.
 
Mixed Sector Performance
Performance across sectors was mixed as 3 of 5 indices trended southwards. The Industrial Goods index appreciated the most, rising 2.2% due to price appreciation in DANGCEM (+3.9%). Similarly, the Banking index gained 0.7% as investors took position in ETI (+4.2%), ACCESS (+1.8%) and UBA (+1.0%). On the flip side, the Consumer Goods index was the biggest loser, down 0.8% due to sell offs in NESTLE(-2.0%), DANGSUGAR (-5.8%) and NIGERIAN BREWERIES (-1.1%). Likewise, the Oil & Gas and Insurance indices contracted 0.5% and 0.4% on the back of losses in TOTAL (-4.8%) and WAPIC (-2.0%) respectively.
 
Investor Sentiment Improves
Investor Sentiment as measured by market breadth (advancers/decliners ratio) improved to 1.8x from 1.2x recorded the previous day consequent on 22 stocks advancing against 12 stocks that declined. The top performers were BERGER (+4.9%), REDSTAREX (+4.9%) and LIVESTOCK (+4.9%) while DANGSUGAR (-5.8%), TOTAL (-4.8%) and CHAMPION (-4.8%) led laggards. In line with expectation, bargain hunting drove performance today and we expect this trend to be sustained till the end of the week in anticipation of the usual year- end rally.

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