Nigerian Equities kick-off Bullish… ASI up 4.0%

The benchmark index took off on a bullish note, rising 4.0% to settle at 32,243.05 points following gains in DANGCEM (+6.0%), MTNN (+4.2%) and BUACEMENT (+4.4%). Consequently, investors value appreciated ₦641.1bn to settle at ₦16.8tn while YTD return improved to 20.1%. Activity level surged as volume and value traded advanced 27.7% and 60.2% to 636.0m units and ₦8.2bn respectively. The most traded stocks by volume were ZENITH (70.2m units), FBNH (67.7m units) and ACCESS (58.0m units) while ZENITH (₦ 1.6bn), MTNN (₦1.2bn) and GUARANTY (₦757.2m) led by value chart.

Performance was bullish across sectors as all 6 indices tracked by us gained. The  Banking and Industrial Goods indicators recorded the strongest appreciation, up 6.6% and 5.5% respectively due to gains in GUARANTY (+5.1%), ZENITH (+6.7%), DANGCEM (+6.0%) and BUACEMENT (+4.4%). Similarly, the AFR-ICT and Consumer Goods indices rose 2.3% and 1.8% respectively as a result of buying interest in MTNN (+4.2%), DANGSUGAR (+9.7%) and FLOURMILL (+4.6%). Finally, investors interest in MANSARD (+4.0%), OANDO (+10.0%) and ARDOVA (+6.3%) drove the Insurance and Oil & Gas indices up 1.6% and 1.0% respectively.

Investor sentiment as measured by market breadth (advance/decline ratio) settled at 4.5x, an improvement from the 2.8x recorded in the previous trading day as 49 stocks gained against the 11 that declined. OANDO (+10.0%), MBENFIT (+10.0%), WAPCO (+10.0%) and NNFM (+10.0%) were the top gainers while NCR (-10.0%), LEARNAFRCA (-8.7%) and CONOIL (-6.3%) led  the losers. Following the significant appreciation recorded in today’s trade, we anticipate profit taking in the next trading session. Nonetheless, we expect market performance to be supported by earnings releases.

Corporate Action
Conoil Plc. (Unaudited 9M:2020 Result): Revenue fell 21.8% y/y to ₦88.1bn from ₦112.7bn while PAT declined 34.6% y/y to ₦1.1bn from ₦1.7bn in 9M:2019.

Market Statistics for Monday, 9th November 2020 

Source: Afrinvest