The equities market opened the week positive, extending gains from the previous week into the third consecutive trading session. All Share Index rose 2.4% on Monday to settle at 38,849.65 points while YTD return expanded to 4.2%. Consequently, market capitalisation rose by N329.7bn to settle at N14.2tn. Today’s performance was buoyed by price appreciation in DANGCEM (+5.0%), GUARANTY (+2.3%) and ZENITH (+2.5%). However, activity level was mixed as volume traded declined 19.7% to 604.5m units while value traded inched 46.7% higher to N16.1bn.
Industrial Goods lead Positive Sector Performance
Sector performance was largely positive as all indices closed in the green. The Industrial Goods index led the gainers chart, up 2.3% primarily due to price appreciation in DANGCEM (+5.0%). The Banking index trailed, rising 2.0% on the back of gains in GUARANTY (+2.3%) and ZENITH (+2.5%) while uptick in MOBIL (+5.0%) and CONOIL (+10.2%) pushed the Oil & Gas index 1.7% higher. Also, the Consumer Goods and Insurance indices rose 1.1% apiece consequent on investors taking position in NIGERIAN BREWERIES (+1.4%), GUINNESS (+4.6%) and MANSARD (+4.4%).
Investor Sentiment Weakens
Investor sentiment - measured by market breadth (advance/ decline ratio) - weakened to 4.1x from 4.4x recorded the previous Friday as 37 stocks advanced against 9 decliners. Today’s best performers were CONOIL (+10.2%), UNITY (+9.7%) and CADBURY (+8.6%) while the worst performing stocks were VITAFOAM (-4.9%), CILEASING (-4.9%) and MEYER (-4.3%). In line with expectation, market performance was positive today as investor sentiment remained strong. Hence, we expect the trend to be sustained in subsequent trading sessions against the backdrop of a broad based rally across sectors.