Equities Market opens the week positive… ASI Up 73bps

The domestic equities market posted a positive performance today on the back of gains in NESTLE (+2.8%), SEPLAT (+8.8%) and DANGCEM (+1.1%). As a result, the All-Share Index (ASI) rose 0.7% to 26,609.34 points while YTD return improved to -15.3%. Similarly, market capitalisation increased by N93.1bn to N12.8tn. Activity level also improved as volume and value traded advanced 72.0% and 136.4% to 382.8m units and N7.2bn respectively. The top traded stocks by volume were TRANSCORP (138.9m units), GUARANTY (48.4m units) and ACCESS (45.0m units) while DANGCEM (N1.6bn), MTNN (N1.5bn) and GUARANTY (N1.4bn) were the top traded stocks by value.

Sector performance was bullish as 4 of 6 indices under our coverage closed in the green. The Oil & Gas index gained the most, up 5.1%, due to price appreciation in SEPLAT (+8.8%) and OANDO (+1.4%). Similarly, the Consumer Goods, Insurance and Industrial Goods indices trailed, gaining 2.1%, 1.0% and 0.4% respectively, driven by buying interest in NESTLE (+2.8%), NEM (+10.0%) and DANGCEM (+1.1%). On the flip side, the Banking and AFR-ICT indices lost 0.7% and 0.5bps respectively on the back of declines in UBN (-9.6%), ACCESS (-2.0%) and CHAMS (-0.02%). 

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 2.0x from 2.7x recorded on the previous trading day as 24 stocks gained while 12 declined. The top performing stocks were UNIONDAC (+10.0%), NEM (+10.0%) and ETERNA (+10.0%) while CILEASING (-10.0 %), LEARNAFRICA (-9.6%) and UBN (-9.6%) declined the most. Despite the positive performance recorded in today’s trading session, we believe bearish sentiment will resurface as investors’ appetite towards the local bourse remains weak.

Market Statistics for Monday, 30th December, 2019