Rally in Telco drives positive performance in stocks

At the close of trade, the local bourse recorded a positive performance following the rally in AIRTELAF (+10.0%), UCAP (+2.0%), and UNITYBNK (+7.1%). As a result, the benchmark index rose 158bps to settle at 39,176.62 points, YTD loss moderated to -2.7% and market capitalisation inched higher by ₦317.5bn to ₦20.4bn. Trading activity surged as volume and value traded increased 143.4% and 292.6% respectively to 474.5m units and ₦4.0bn. The most traded stocks by volume were GTCO (37.3m units), ETI (24.1m units), and JAIZBANK (18.6m units) while GTCO (₦1.0bn), MTNN (₦489.3m), and ZENITH (₦166.9m) led by value.

Performance across sectors under our coverage was bearish as 4 indices lost while 2 gained. The AFR-ICT and Oil & Gas indices rose 5.5% and 0.1% respectively, driven by buying interest in AIRTELAF (+10.0%) and OANDO (+0.6%). Conversely, the Insurance index led laggards, down 0.2% due to sell-offs in CHIPLC (-6.9%) and MANSARD (-1.1%). Similarly, the Consumer and Industrial Goods indices fell 0.1% apiece following profit-taking in FLOURMILL (-1.9%), UNILEVER (-0.7%), and CUTIX (-0.9%). Price depreciation in GTCO (-0.5%) and WEMABANK (-2.4%) dragged the Banking index lower by 2bps. 

Investors sentiment as measured by market breadth (advance/decline ratio) strengthens to 1.1x from 0.9x recorded in the last trading session as 21 stocks gained while 19 stocks lost. AIRTELAF (+10.0%), UNITYBNK (+7.1%), and VERITASKAP (+4.3%) led gainers while JULI (-9.0%), CHIPLC (-6.9%), and JAIZBANK (-4.8%) led losers. We expect to see a mix of profit-taking and bargain hunting in the domestic equities market in the next trading session.

Market Statistics for Tuesday, 10th August 2021