Market Capitalisation Rebounds

The Nigerian equities market recouped losses of the previous trading session as the All Share Index rose 22bps to close at 37,013.57 points while YTD return expanded to 37.7%. Today’s positive performance was primarily on account of buying interest in DANGCEM (+0.9%); ex-DANGCEM, market would have lost 6bps. Accordingly, market capitalization gained N28.6bn to settle at N12.8tn. However, activity level was mixed as volume fell 34.6% to close at 305.2m units while value traded rose 0.1% to N2.9bn.

Mixed Sector Performance
Sector performance across board was mixed as 2 of 5 indices trended northwards while 2 closed in the red and one flat. The Industrial Goods and Banking indices were today’s gainers, up 0.5% apiece, on the back of gains in DANGCEM (+0.9%), ZENITH (+0.4%) and GUARANTY (+0.7%). The Consumer Goods index led losers, down 0.7% due to profit taking in INTBREW (-9.3%) and NIGERIAN BREWERIES (-0.6%). Similarly, price depreciation in MOBIL (-5.0%) dragged the Oil & Gas index to record a loss of 0.2%.

Investor Sentiment Strengthens
Investor sentiment further strengthened as market breadth (advancers/decliners ratio) improved to 1.3x from 1.2x recorded yesterday. The best performing stocks were DIAMOND (+5.2%), UPL (+4.8%) and NEM (+4.6%) while the worst performers were INTBREW (-9.3%), LINKASSURE (-5.0%) and MORISON (-5.0%). Given today’s performance and improved market breadth, we expect market performance and sentiment in the short term to stay positive as investors continue to react to favourable developments in the Oil market and positive outlook for earnings.