Market Breadth Stays Positive as Stocks Extend Gains

The Nigerian equities market extended its bullish run to the sixth consecutive trading session as the benchmark index grew 0.8% to settle at 29,498.31 points, while YTD gain improved to 9.8%. Today’s performance was buoyed by upticks in DANGEM (+4.7%) and NIGERIAN BREWERIES (+2.4%) which offset profit taking in GUARANTY (-5.0%) and SEPLAT (-5.0%). Accordingly, investors accumulated N76.6bn as market capitalization increased to N10.2tn. However, Market activity, waned as volume and value traded declined 58.8% and 56.0% to 343.2m units and N3.3bn respectively.

Mixed Performance across Sectors
Performance across sectors was mixed as 3 of 5 indices appreciated. The Insurance index led sector gainers, up 2.5% on account of appreciations in MANSARD (+8.2%) and CUSTODYINS (+5.3%). Likewise, the Industrial and Consumer Goods indices rose 1.9% and 1.5% respectively on the back of gains in DANGCEM (+4.7%) and NIGERIAN BREWERIES (+2.4%). On the flip side, the Banking index dipped 3.1% due to profit taking in GUARANTY (-1.5%) and ZENITH (-2.8%) while depreciations in SEPLAT (-5.0%) and OANDO (-5.0%) dragged the Oil & Gas index 2.3% southwards.

Investor sentiment Stays Positive
Investor sentiment, as reflected by market breadth (advancers/decliners ratio) remained positive, closing at 1.7x consequent on 31 advancers against 18 decliners. The top gainers were UAC-PROP (+9.8%), MANSARD (+8.2%) and LAWUNION (+7.7%) while the top losers were GUARANTY (-5.0%), NEM (-5.0%) and SEPLAT (-5.0%). Following six consecutive days of appreciation, we expect investors to start taking profit in the trading session ahead. This is further buttressed by the fact that market 14-Day RSI currently stands at 81.9 points (overbought region) and historical trend shows that market performance usually turns once the RSI crosses the 80.0 point benchmark.