Stock Market Rebounds as Sentiment Strengthens

The Nigerian equities market halted the two day bearish run to end today’s trading session in the green as the Benchmark index appreciated 0.4% to settle at 26,609.67 points, whilst YTD return rose to 2.7%. Similarly, investors gained N33.2bn as market capitalization increased to N9.5tn. Today’s positive performance was largely driven by uptrend in NIGERIAN BREWERIES (+2.4%) and GUARANTY (+1.7%) which offset the decline in SEPLAT (-9.0%) and ETI (-2.6%). However, activity level weakened as volume and value traded fell 15.2% and 15.5% to N569.2m units and N6.7bn respectively in 4,632.00 deals.
 
Mixed Performance Across Sectors
Performance across sectors was mixed as 3 of 5 indices advanced. The Consumer Goods index appreciated the most, up 1.3% on account of price appreciation in NIGERIAN BREWERIES (+2.4%), NESTLE (+0.3%) and FLOURMILLS (+3.2%). The Banking index trailed, advancing 0.9% on the back of gains in GUARANTY (+1.7%), ACCESS (+2.4%) and ZENITH (+0.6%). Similarly, the Industrial Goods index trended 0.2% northwards owing to gains in CAP (+4.4%). On the flip side, the Oil and Gas index fell 3.4% on the back of continuous profit taking in SEPLAT (-9.0%) and TOTAL (-1.5%) whilst AIICO (-1.9%) dragged the Insurance index (-0.1%) southwards.

Investor Sentiment Strengthens
Investor sentiment strengthened as indicated by market breadth (advancers/decliners ratio) which rose to 1.5x from 0.4x recorded yesterday, consequent on 23 advancers against 15 decliners. At the top of the gainers’ chart were INTBREW (+5.0%), CUSTODYINS (+4.9%) and FCMB (+4.7%) while SEPLAT (-9.0%), AIRSERVICE (-8.9%) and DANGSUGAR (-3.6%) topped the losers’ chart. We expect the positive sentiment to be sustained in the session ahead as investor appetite for equities continues to be buoyed by the improvement recorded in the FX market, particularly the I&E window which is expected to attract portfolio investors. Nevertheless, we expect some investors to book profit towards the end of the week.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, only CSCS, IGI, WAMCO and NDEP traded, with total volume and value closing at 1.1m units and N7.1m respectively.

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