Domestic Equities Market: Local Bourse Sustains Bullish Momentum... ASI up 2.2% w/w
This week, the domestic equities market performed positively as investors positioned in DANGCEM (+6.1%), AIRTELAF (+7.0%) and BUACEMENT (+4.8%). Consequently, the NSE All-Share Index closed in the green, rising 219bps w/w to settle at 34,885.51 points. Similarly, YTD return improved to 30.0% while market capitalisation rose ₦390.3bn w/w to ₦18.2tn. Activity level declined as average volume and value traded fell 84.1% and 28.1% to 363.2m units and ₦5.2bn. The top traded stocks by volume were ZENITH (251.5m units), TRANSCORP (176.2m units) and ACCESS (146.1m units) while ZENITH (₦6.1bn), GUARANTY (₦3.3bn) and DANGCEM (₦3.1bn) led by value.
Performance across sectors was bullish as 4 of the 6 indices under our coverage trended northward w/w. The Industrial Goods index led gainers, up 4.4% on the back of buying interest in DANGCEM (+6.1%) and BUACEMENT (+4.8%). Trailing, the AFR-ICT and Oil & Gas indices rose 4.1% and 0.6% respectively due to price appreciation in MTNN (+1.3%), AIRTELAF (+7.0%), MOBIL (+9.9%) and TOTAL (+0.1%). Bargain hunting in NEM (+81.6%) and WAPIC (+7.3%) drove the Insurance index higher by 0.3%. Conversely, the Banking and Consumer Goods indices lost, down 1.3% and 0.5% following sell-offs in WEMABANK (-9.1%), UNITYBNK (-5.1%), HONYFLOUR (-10.8%) and CHAMPION (-9.4%).
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 0.7x from 0.4x as 27 stocks advanced against 40 that declined. The top performing stocks for the week were NEM (+81.6%), UPDC (+32.5%) and NEIMETH (+12.0%) while JAPAULOIL (-11.1%), HONYFLOUR (-10.8%) and CUSTODIAN (-10.0%) were the laggards. In the coming week, we anticipate that investors will take profit.