The local bourse maintained an upward trend on Tuesday, posting gains for the 4th consecutive session due to buying interest in ZENITH (+0.7%), DANGSUGAR (+3.9%) and STANBIC (+2.9%). Consequently, the All Share Index rose 58bps to 30,137.53 points, YTD loss moderated further to -4.1% while market capitalisation increased by N64.4bn to N11.2tn. Activity level also strengthened as volume and value traded surged 126.7% to 300.1m units and 199.2% to N3.2bn. DIAMOND (100.7m units), GUARANTY (39.4m units) and UBA (26.2m units) were the top traded stocks by volume; while GUARANTY (N1.3bn), ZENITH (N463.0m) and DIAMOND (N209.4m) were the top traded by value.
Sector Performance Turns Bullish
All 5 indices under our coverage advanced at the close of trade today. The Insurance index led gainers, up 3.5% on the back of price appreciation in NEM (+8.3%) and MANSARD (+8.7%). The Industrial Goods index followed closely, up 3.1% due to buying interest in CCNN (+10.0%). In the same vein, the Consumer Goods and Banking indices advanced 0.5% and 0.3% respectively driven by bargain hunting in ACCESS (+2.7%), ZENITH (+0.7%) and DANGSUGAR (+3.9%). Lastly, the Oil & Gas index inched 0.3% northwards as OANDO (+5.8%) recorded gains.
Investor Sentiment Strengthened
Investor sentiment measured by market breadth (advance/decline ratio) strengthened to 1.4x from 1.0x recorded the previous trading session as 24 stocks closed in the green relative to 14 laggards. The top gainers were CCNN (+10.0%), IKEJAHOTEL (+9.4%) and ROYALEX (+9.1%) while NEIMETH (-9.1%), VERITASKAP (-9.5%) and AIRSERVICE (-8.6%) were the worst performers. Despite the strong sentiment we observed in the previous trading sessions, we expect investors to book profit in subsequent trading sessions.