Market Opens Positive with Bullish Sentiment

The local Bourse opened the week bullish as the All Share Index (ASI) gained 24bps to close at 36,792.60 points while YTD return expanded to 36.9%. As a result, investors gained N30.9bn, bringing market capitalization to settle at N12.8tn. Today’s performance can be primarily attributed to buying interest in ZENITH (+3.6%), PZ (+10.2%) and DANGSUGAR (+4.3%). Notwithstanding, activity level declined as volume and value traded fell 88.6% and 61.1% to 208.7m units and N2.5bn respectively.

Banking and Consumer Goods Indices Lead Gainers
Performance across sectors was broadly positive as 3 of 5 indices closed northwards, 1 declined while the other closed flat. The Banking and Consumer Goods indices rose 0.5% apiece on the back of price appreciations in ZENITH (+3.6%), UBA (+0.2%), PZ (+10.2%) and NESTLE (+0.4%). Similarly, the Insurance index gained, inching 0.4% higher due to buying interest in NEM (+4.5%) and LINKASSURE (+3.6%). On the flip side, the Oil & Gas index was the lone loser, down 1.1% primarily due to losses in FORTE (-9.7%). The Industrial Goods index closed the day flat.

Investor Sentiment Remains Bullish
Investor sentiment as measured by market breadth (advancers/decliners’ ratio) stayed positive at 1.2x - albeit a moderation from 1.9x recorded the previous Friday - as 17 stocks advanced against 14 stocks that declined. Top three performers were PZ (+10.2%), NASCON (+9.6%) and ETERNA (+4.8%) while FORTE (-9.7%), LAWUNION (-4.6%) and UNITY (-3.8%) were the worst three performers. Market watchers at Afrinvest noted that today’s positive performance can be largely attributed to investors taking position in previous decliners and they expect this to continue in subsequent trading sessions.

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