Bulls Kickstart the Week… ASI up 0.6%

The local bourse resumed on a positive note as gains in GTCO (+6.5%), ZENITH (+5.0%) and FIRSTHOLD CO (+5.7%) pushed the NGX-ASI higher by 0.6% to 105,551.39 points. As a result, YTD retum improved to 2.6% (previously 2.0%), while market capitalisation rose 60bps to N66.2 trillion. Meanwhile, activity level varied as volume traded rose 10.9% to 440.5m units, while value traded fell 26.1% to N10.5 billion.
Performance across our coverage sectors was mixed albeit positively skewed, as three indices gained, one lost while the Industrial Goods and ARF-ICT indices closed flat. The Banking and Oil & Gas indices rose 3.8% and 0.4% respectively to due price appreciation in GTCO (+6.5%), ZEN ITH (+5.0%), OANDO (+3.9%) and MRS (+3.1%). Trailing, buy interest in HONYFLOUR (+6.7) and NB (+0.8%) pushed the Consumer Goods index up 10bps. On the flip side, sell pressure on MANSARD (-4.4%) and CORNEST (-2.6) pulled the Insurance index down 1.5%.
Outlook Investor sentiment, as measured by market breadth, weakened to 0.04 (from 0.11x in the prior session) as 25 stocks advanced, 22 declined, while 80 closed flat. We forecast an extended positive trading activity tomorrow, barring any external shocks.