FBNH, Guaranty, Dangote Cement power Nigerian equities to record 1.0% gain

The Nigerian equities market sustained gains Thursday as benchmark index, the NSEASI, grew 1.0 percent to 42,604.40 points while YTD return improved to 11.4 percent. Consequently, market capitalisation increased by N155.2 billion to N15.3 trillion.

The day’s performance was majorly driven by price appreciation in FBNH (+8.2%), GUARANTY (+2.0%) and DANGCEM (+0.6%). Similarly, activity level improved as volume and value traded inched 18.1 percent and 33.0 percent higher to 615.1 million units and N6.3 billion respectively.

Performance across sectors was largely bullish as four of five indices closed in the green while one closed flat. The banking index led gainers, up 1.3 percent due to a rally in GUARANTY (+2.0%), UBA (+4.2%) and ACCESS (+2.4%).

The industrial and consumer goods indices trailed, rising 0.9 percent and 0.8 percent respectively as investors took positions in DANGCEM (+0.6%), WAPCO (+2.0%), NIGERIAN BREWERIES (+1.9%) and DANGSUGAR (+4.8%).

Similarly, the oil & gas index appreciated marginally by one basis point on gains in SEPLAT (0.01%). The insurance index, however, closed the day flat.

Investor sentiment, measured by market breadth (advance/decline ratio) remained positive despite weakening to 1.2x from 1.3x recorded the previous day as 29 stocks advanced relative to 24 stocks that declined.

The best performers were FBNH (+8.2%), WAPIC (+6.3%) and MAYBAKER (+5.0%) while CAVERTON (-8.8%), COURTVILLE (-8.7%) and FIRSTALUM (-7.5%) led laggards.

“Following the rebound in the market yesterday and further gains recorded today, we believe the positive trend will be sustained in the last trading day of the week as investors continue to seek for bargain opportunities in the market,” analysts at Afrinvest noted.

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