Local Bourse Sustains Gain for Fourth Consecutive Session

The equities market closed higher for the fourth consecutive session on Monday as the All Share Index (ASI) improved 1.4% to settle at 36,831.93 points, while YTD gain expanded to 37.1%. Investors in turn gained N175.9bn as market capitalization stood at N12.7tn. The major drivers of today’s performance were DANGCEM (+2.9%), GUARANTY (+3.2%) and ZENITH (+0.9%). Contrarily, activity level waned as volume and value traded dipped 28.6% and 20.0% to 262.2m units and N3.0bn respectively.

All Sector Indices Close in the Green
Sector performance was largely positive as all sector indices trended northward. The Banking and Oil & Gas indices climbed 1.3% apiece on the back of gains in GUARANTY (+3.2%), ZENITH (+0.9%) and bargain hunting in TOTAL (+5.0%) and SEPLAT (+5.0%). Likewise, rally in DANGCEM (+2.9%) ensured the Industrial Goods index closed 1.2% higher. In the same manner, the Insurance and Consumer Goods indices rose 0.5% and 0.4% on account of gains in CONSTINSURE (+4.6%) and NESTLE (+0.6%) respectively.

Investor Sentiment Stays Positive
Market breadth stayed positive, improving to 2.9x (from 2.8x recorded on Friday) as 44 stocks advanced against 15 which declined. The top gainers were MAYBAKER (+11.9%), PRESCO (+9.5%) and FBNH (+7.7%) while the top losers were CUTIX (-8.0%), UNITYBNK (-7.0%) and MRS (-4.9%). We attribute today’s positive close to investor expectation of Q3:2017 earnings results. In subsequent sessions, we expect market to remain upbeat as early bird investors continue to position in equities ahead of earnings releases.