Stock market rebounds… ASI up 2bps

The NGX-ASI bounced back with a 2bps gain today to close at 45,939.51 points due to price appreciation in ETI (+9.9%), 0.0% SEPLAT (+1.3%), and UBA (+0.6%). Thus, YTD return was unchanged at 7.5% while market capitalisation increased ₦6.1bn to ₦24.8tn. Volume traded declined 11.1% to 247.7m units while value traded edged up 23.9% to ₦3.6bn. Trailing, the Banking and Consumer Goods indices rose 0.5% and 0.1% respectively on the back of gains in ETI (+9.9%), UBA (+0.6%), CHAMPION (+8.1%), and HONYFLOUR (+1.5%). Conversely, the Insurance and Industrial Goods indices dipped 0.9% and 3bps respectively due to sell pressure on CORNEST (-4.0%), CHIPLC (-3.1%), and WAPCO (-0.4%). Investor sentiment, as measured by market breadth, strengthened to 0.1x from -0.2x as 20 stocks advanced, 15 declined while 77 closed flat. We expect the positive performance to be sustained in the next trading session.

Today, Raysun Nigeria Limited notified shareholders of Champion Breweries PLC who wish to tender some or all of their shares in the Takeover offer to execute the Acceptance form not later than 31 January 2022 in order to participate in the offer of up to 1,196,199,164 ordinary shares of Champion Breweries PLC (15.3%) at ₦2.60 per share. The CBN monetary policy committee at the end of its 283rd meeting today retained all policy parameters – MPR: 11.5%; CRR: 27.5%; and LR: 30.0%; asymmetric corridor: +100/-700bps. Across our coverage sectors, performance was mixed as 3 indices advanced, 2 declined while AFR-ICT index closed flat. The 7.5% Oil & Gas index led the gainers with a 0.7% appreciation buoyed by buy interest in SEPLAT (+1.3%). Investor sentiment, as measured by market breadth, strengthened to 0.1x from -0.2x as 20 stocks advanced, 15 declined while 77 closed flat. We expect the positive performance to be sustained in the next trading session.