Stock Market Remains Bullish

The equities market extended 6 days of positive momentum, gaining 1.0% at the close of trade today to close at 26,418.33 points whilst trimming YTD loss to 1.7%. Performance was buoyed by price appreciations in bellwether FMCGs and Banking companies - NIGERIAN BREWERIES (+2.1%), NESTLE (+3.4%), 7UP (+9.7%) and GUARANTY (+1.3%). Consequently, investors gained N63.2bn as market capitalization settled at N9.1tn. On the other hand, volume traded fell 39.6% to close at 267.6m units while value traded rose 10.0% to settle at N3.3bn.

Sector Indices broadly Positive
Performance across sectors was broadly positive as all indices advanced save for the industrial Goods index which fell 2bps on account of a decline in CCNN (-1.9%). The Consumer Goods index recorded the highest gain (+2.0%) on account of buy sentiment in NESTLE (+3.4%), 7UP (+9.7%) and NIGERIAN BREWERIES (+2.7%). Similarly, the Insurance index trailed, rising 1.8% on the back of price appreciations in CONTINSURE (+9.4%) and AIICO (+7.6%) while the Oil & Gas and Banking indices appreciated 1.4% and 0.4% respectively on the back of gains in OANDO (+10.0%), GUARANTY (+1.3%) and STANBIC (+2.5%).

Investor Sentiment also Positive
Investor sentiment stayed positive as market breadth settled at 2.1x from 2.3x recorded on Friday - a total of 25 stocks advanced against 13 declining stocks. The best performing stocks today were OANDO (+10.0%), 7UP (+9.7%) and CONTINSURE (+9.4%) while CHAMPION (-4.7%), AFRIPUD (-3.3%) and DANGFLOUR (-2.3%) declined the most. The upbeat performance in the equities market has been mainly driven by solid Q1:2017 earnings as well as knock-on impact of improved FX liquidity on sentiment. Whilst we acknowledge these fundamental drivers of sentiment, the market breached the overbought boundary today with the benchmark index 14-Day RSI reaching the 70.0 point threshold. On this basis, we expect investors to take a breather in subsequent session.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, total volume and value traded stood at 75,297 units and N10.2m respectively. AFRILAND, CAPDBETO and WAMCO traded today.

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