Nigerian Bourse Extends Gains

Photo: Bola Adeeko, Head, Corporate Services Division, The Nigerian Stock Exchange (NSE); Patrick Ezeagu, Chairman, Association of Stockbroking Houses of Nigeria (ASHON); Oscar Onyema, Chief Executive Officer, NSE; Mojisola Adeola, Head, Council Secretariat, NSE and Stephen Falomo, Head, Lagos Zonal Office, Securities and Exchange Commission (SEC) during the recent Induction Ceremony for Newly Qualified Dealing Clerks at The Exchange in Lagos. 


The Nigerian Bourse extended gains from the previous session as the All Share Index rose 55bps to close at 37,709.20 points on Wednesday while YTD return expanded to 40.3%. As a result, investors gained N71.6bn as market capitalization advanced to N13.1tn. The major drivers of today’s performance were NESTLE (+1.9%), GUARANTY (+1.2%) and ETI (+3.2%). However, activity level softened as volume and value traded fell 59.9% and 14.9% to settle at 441.8m units and N4.1bn respectively.

Bullish Sector Performance
Sector performance was largely positive as all indices trended northwards, save the Industrial Goods index which declined 0.7% due to losses in WAPCO (-2.0%). WAPCO recently opened its Rights Issue at a subscription price of N42.50/share, 13.3% discount to current share price (N49.00/share). The Insurance index emerged the top gainer, up 1.4% owing to upticks in MANSARD (+4.9%) and CUSTODYIN (+0.8%). The Banking index trailed, rising 1.1% on account of sustained buying interest in GUARANTY (+1.2%), ETI (+3.2%) and FIDELITY (+9.9%). Similarly, gains in NESTLE (+1.9%) and UNILEVER (+4.5%) pushed the Consumer Goods index 1.0% higher while the Oil & Gas index (+0.3%) was buoyed by price appreciation in FORTE OIL (+4.9%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) further strengthened to 3.9x from 2.4x recorded the previous session as 31 stocks advanced against 8 decliners. The best performers were FIDELITY (+9.9%), CHAMPION (+8.7%) and FCMB (+7.5%) while the worst performers were LIVESTOCK (-4.5%), MORISON (-3.5%) and NPFMCRFBK (-2.3%). Following the day’s positive performance and improved investor sentiment, we expect market performance in subsequent trading sessions to remain positive following increased buying interest in Small and Mid-cap stocks.