NGX starts week trading Week on Bullish note ASI up 0.2%

Trading at the Nigerian Exchange NGX, extended its bullish momentum as gains in GEREGU, FBNH, and GTCO pushed the benchmark index up 23bps to print at 97,685.64 points. Consequently, YTD return rose to 30.6% (previously: 30.3%), while market capitalisation grew 23bps to $56.1t. Similarly, trading activity accelerated as volume and value traded rose by 14.1% and 45.3% respectively to 471.3m units and #9.4bn. Bullish Sector Performance

Across coverage sectors, performance was bearish as four indices lost while the other two gained. The Insurance and Oil & Gas indices led laggards, down 1.5% and 0.6% accordingly owing to losses in CORNERST (- 4.0%), MANSARD (-3.6%), OANDO (-9.9%), and ETERNA (-10.0%). Following suit, the Industrial Goods and AFR- ICT indices fell 1bp apiece on the back of sell offs in CUMIX (-5.2%) and CWG (-3.5%). On the flip side, the Banking and Consumer Goods indices gained 1.4% and 0.9% respectively – thanks to price uptick in FBNH (+10.0%), GTCO (+2.0%), FLOURMILL (+10.0%), and DANGSUGAR (+3.9%).|

Investor sentiment, as measured by market breadth, weakened to 0.00x from 0.20x in the previous session as 26 stocks advanced, 26 declined while 69 closed flat. Given the current weak investor sentiment, we expect a mile bearish performance on the local bourse amid profit-taking activities. In August, headline inflation rate eased for the second straight month, down 125bps to 32.2% yly. The slowdown reflected a m/m decline in price growth to 2.2% from 2.3% – a testament of the 10bps decline in food inflation to 2.4% – alongside impact of favourable base. Overall, annual food inflation slowed down 201bps to 37.5% yly while the core basket (ex. farm