Local Bourse Posts Gains for the 4th Consecutive Session

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.

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