Business Journal

Analysis

Positive Streak Extends into 5th Consecutive Trading Day

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As anticipated, the All Share Index (ASI) significantly rose by 3.1% to settle at 31,145.15 points, extending the bullish performance into the 5th consecutive trading day.

This performance was largely driven by price appreciation in MTNN (+10.0%), DANGCEM (+9.7%) and GLAXOSMITH (+5.3%). As a result, YTD loss improved to -0.9% from -3.9% recorded in the previous session, while market capitalisation advanced by N408.3bn to N13.7tn.

However, activity level was mixed as volume traded declined by 12.2% to 294.4m units and value traded advanced 1.7% to N17.5bn. MTNN (93.7m units), ZENITH (29.5m units) and UBA (22.4m units) were the most traded stocks by volume while MTNN (N13.6bn), DANGCEM (N1.7bn) and ZENITH (N566.4m) led top traded stocks by value.

Industrial Goods Index Emerges Lone Gainer
Performance across sectors was largely bearish as 4 of 5 indices under our coverage trended southwards. The Consumer Goods index led decliners, down 3.6% on account of sell-offs in NESTLE (-7.7%) and NIGERIAN BREWERIES (-0.7%).

The Banking index trailed, shedding 2.7% due to price depreciation in GUARANTY (-2.6%) and ZENITH (-2.6%) while the Insurance and Oil & Gas indices dipped 0.5% and 0.3% respectively following losses in LAWUNION (-9.1%) and OANDO (-2.2%). On the flip side, the Industrial Goods index emerged the lone gainer, up 1.1% driven by bargain hunting in DANGCEM (+9.7%).

Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.4x from 0.8x recorded in the previous trading session as 12 stocks advanced against 27 decliners.

MTNN (+10.0%), VITAFOAM (+9.8%) and DANGCEM (+9.7%) were the top performing stocks while LAWUNION (-9.1%), ETI (-8.5%) and JAPAULOIL (-8.3%) led laggards.

Despite the weak investor sentiment, we expect the rally in MTNN and renewed interest in DANGCEM to continue to buoy market performance in the near term.

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