The Nigerian equities market recorded a positive performance on the first trading session of the week as the All Share Index gained 6bps to close at 36,484.30 points, while the YTD return strengthened to 35.8%. In the same vein, market capitalization grew by N7.6bn to N12.6tn. This performance is largely attributable to gains in ZENITH (+1.1%) UBA (+2.5%) and ETI (+2.6%). On the contrary, activity level declined as volume and value traded fell 30.3% and 39.4% to 175.0m units and N1.8bn respectively.
Mixed Performance across Sectors
Sector performance was mixed with the Industrial Goods index emerging the biggest loser, down 1.5% largely due to losses in WAPCO (-3.9%). The insurance index followed suit, down 9bps on the back of losses in MANSARD (-1.9%) and NEM (-3.1%) while the Consumer Goods index closed flat. On the flip side, the Banking and the Oil & Gas indices gained marginally, up 7bps and 1bp on the back of gains in ZENITH (+1.1%), UBA (+2.5%), FORTE (+7.1%) and TOTAL (+3.1%).
Investor Sentiment Weakens
Investor sentiment weakened as market breadth dropped to 0.8x (from 1.0x recorded on Friday) as 16 stocks advanced against 21 decliners. DANGFLOUR (+10.2%) FORTE (+7.1%) and HONYFLOUR (+5.0) were the best performing stocks while MORISON (-4.8%) LIVESTOCK (-4.5%) and WAPCO (-3.8%) were the worst performers. Although we observed a bearish sentiment at close of trade, today’s performance was largely driven by investors seeking bargain positions in large cap stocks. We expect this trend to continue in subsequent sessions.