Nigerian Stock Market records marginal gain… ASI up 3bps

At the close of trade, the benchmark index rose marginally by 3bps to settle at 30,741.88 points due to price appreciation in FCMB (+5.2%), GUARANTY (+0.3%) and DANGSUGAR (+0.7%). Similarly, investors gained ₦4.4bn as market capitalisation advanced to ₦16.1tn and YTD return settled at 14.5%. Activity level declined as volume and value traded fell 14.8% and 20.5% to 286.4m units and ₦3.1bn respectively. The most traded stocks by volume were ACCESS (145.0m units), ZENITH (21.9m units) and UBA (17.0m units) while ACCESS (₦1.2bn), STANBIC (₦520.4m) and ZENITH (₦477.8m) led by value.

Across sectors, performance was bullish as 3 of the 6 indices under our coverage closed northward save the Banking, AFR-ICT and Oil & Gas indices which closed flat. The Insurance index led the gainers, up 1.0% due to buying interest in AIICO (+4.8%), CHIPLC (+8.8%) and PRESTIGE (+7.4%). Similarly, the Consumer and Industrial Goods indices rose 5bps and 3bps respectively following gains in DANGSUGAR (+0.7%), WAPCO (0.3%) and CAP (+3.1%). 

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.1x from the 1.3x recorded previously as 12 stocks gained against the 11 that lost. CHIPLC (+8.8%), PRESTIGE (+7.4%) and FCMB (+5.2%) were top gainers while MBENEFIT (-4.8%), WEMABANK (-3.1%) and JBERGER (-2.6%) led laggards. We expect market sentiment to be dictated by the performance of the earnings results.

Corporate Actions
MCNICHOLS CONSOLIDATED Plc. (Unaudited 9M:2020 Result): Revenue rose 6.5% y/y to ₦561.8m from ₦527.4m while profit after tax grew 3.5% y/y to ₦16.0m from ₦15.4m.

RAK UNITY Plc. (Unaudited 9M:2020 Result): Revenue declined 60.6% y/y to ₦1.4bn from ₦3.6bn while the company recorded a loss of ₦37.0bn.

Market Statistics for Wednesday, 4th November 2020 

Source: Afrinvest