Equity Market Extends Winning Streak, As Index Up 0.23%

The Nigerian bourse yesterday sustained its positive momentum  as the All Share Index rose 0.23 percent to close at a month high of 33,514.93 points while year-to-date return expanded to +24.7 percent.
Performance in Wednesday’s session was broadly buoyed by renewed buy sentiment towards Banking Stocks – ZENITH (+2.1%), Stanbic IBTC (+3.1%), FBNH (4.2%), and Guaranty Trust Bank (+0.8%) – which offset losses in DANGCEM (-1.0%) and Nestle Nigeria (-1.8%).
Accordingly, investors recouped N27.0 billion in value as market capitalisation increased to N11.6 trillion. Also, activity level improved as volume and value traded increased 2.4% and 69.5% to 331.4m units and N3.2 billion respectively.
Performance across sectors was mixed as 2 of 5 indices closed in the green. The Oil & Gas index advanced the most, up 1.4% on the back of price appreciation in Oando (+5.0%), whilst renewed buying interest in Zenith Bank (+2.1%) and Stanbic IBTC (+3.1%) drove the Banking index 1.1% higher. On the flip side, the Insurance and Industrial Goods indices dipped 0.5% apiece against the backdrop of losses in MANSARD (-4.3%) and Dangote Cement (-1.0%). The Consumer Goods index closed flattish as gains in Nigerian Breweries (+0.6%) offset losses in Nestle (-1.8%).
Investor sentiment as reflected by the market breadth (advancers/decliners’ ratio) softened to 1.0x (from 1.3x recorded yesterday) – 24 stocks advanced against 23 that declined. The top gainers were TRANSCORP (+8.8%), Skye Bank (+5.0%) and PZ (+5.0%) while PRESCO (-5.0%), MRS Oil  (-5.0%) and Livestock and Feeds  (-4.4%) were the worst losers. As half year corporate scorecards begin to trickle in, we expect market performance to remain largely bullish – driven by positive earnings expectation.

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