Local Bourse Sustains Positive Momentum

The local bourse sustained its positive momentum on Tuesday to extend gains to the fourth consecutive session as the All Share Index rose 1.3% to close at 40,362.97 points while YTD return expanded to 5.5%. In turn, investors gained N182.7bn as market capitalization settled at N14.4tn. Today’s performance was buoyed by a broad-based rally across sectors, although DANGCEM (+1.4%), ZENITH (+4.9%) and GUARANTY (+2.2%) were the main drivers. However, activity level was mixed as volume traded inched 27.5% higher to 770.9m units while value traded dipped 51.2% to N7.9bn.

Consumer Goods Index Emerges Lone Loser
Sector Performance was largely bullish as all indices save the Consumer Goods which shed 0.3% following price depreciation in NESTLE (-3.3%), closed in the green. On the flip side, the Banking index appreciated the most, up 2.3% on the back of sustained interest in ZENITH (+4.9%), GUARANTY (+2.2%) and ACCESS (+4.2%). The Oil & Gas index trailed, rising 1.2% on account of upticks in CONOIL (+5.0%) and MOBIL (+0.8%). Similarly, the Insurance and Industrial Goods indices rose 0.7% apiece as WAPIC (+7.4%), LINKASSURE (+2.6%) and DANGCEM (+1.4%) closed higher.

Investor sentiment Strengthens
Investor sentiment - measured by market breadth (advance/ decline ratio) - strengthened to 6.7x from 4.1x recorded in the previous session as 47 stocks advanced against 7 that declined. Today’s best performing stocks were DANGFLOUR (+10.0%), FCMB (+9.0%) and WAPIC (+7.4%) while the worst UAC-PROP (-4.7%), NAHCO (-4.7%) and NESTLE (-3.3%) declined the most. Following four consecutive days of appreciation, we do not rule out the possibility of some profit taking later in the week. Nevertheless, as investor sentiment waxes stronger, our near term outlook on the market remains positive.