Bulls reclaim ground at NGX stock trading as ASI up 3bps

The NGX market rebounded as the benchmark index gained 3bps to print at 109,730.47 points following buying interest in NESTLE (+10.0%), NB (+4.4%), and GTCO (+1.2%). Consequently, YTD return printed at 6.61% (previously 6.58%), while market capitalisation rose 3bps to N69.0tn. Likewise, activity level improved as volume and value traded rose 2.3% and 16.1% to 497.1m units and N13.2bn respectively. Across sectors under our coverage, performance was mixed with a positive tilt as three indices gained, two lost, while the AFR-ICT index closed flat. The Consumer Goods index topped the gainers chart with a 2.5% increase, owing to buying interest in NESTLE (+10.0%), NB (+4.4%), and UNILEVER (+9.3%). Following suite, the Insurance and Industrial Goods indices rose 1.4% and 3bps accordingly, due to price appreciation in CORNERST (+4.6%), LINKASSURE (+8.8%), and CUTIX (+7.3%). On the flip side, the Oil & Gas and Banking indices fell 2.9% and 0.4% sequentially, following sell pressure on OANDO (-0.9%), FIDELITY (-5.0%), and FIRSTHOLDCO (-0.8%).
Investor sentiment, as measured by market breath, worsened to -0.03x (previously: 0.40x) as 31 stocks gained, 33 lost while 63 were unchanged. We expect the market to extend the postive close tomorrow driven by bargain hunting activities. As anticipated, the Monetary Policy Committee of the CBN at the end of its bi-monthly meeting today held all policy parameters unchanged – MPR at 27.5%, Asymmetric Corridor around MPR at +500/-100, Cash Reserve Ratio for commercial & merchant banks at 50.0% & 16.0% respectively, and liquidity ratio at 30.0%.