The Nigerian equities market rallied Thursday, reversing prior negative performance as benchmark index rose 1.28 percent to settle at 38,676.12 points. The market year-to-date gain thus expanded to 1.1 percent.
The rally in the market, according to analysts, is largely driven the “January effect”- a period in which there is increased buying activity at the start of the year.
Specifically, the day’s performance saw market capitalization growing by N174.0 billion to N13.8 trillion. Gains in GUARANTY (+3.8%), ZENITH (+5.0%) and UBA (+4.4%) helped push the market higher.
Similarly, activity level improved as volume and value traded advanced 40.0 percent and 83.2 percent to 825.1 million units and N3.9 billion respectively.
Performance across sectors was largely positive as all indices closed in the green save the consumer goods index, which shed 0.2 percent on the back of losses in NESTLE (-3.6%) and PZ (-3.8%).
On the flip side, the banking index led the gainers chart, up 3.9 percent due to price appreciation in GUARANTY (+3.8%), ZENITH (+5.0%), UBA (+4.4%) and DIAMOND (+9.9%).
The oil & gas index followed, up 2.1 percent as investors took position in SEPLAT (+3.8%), FORTE (+5.0%) and CONOIL (+5.0%). Similarly, DANGCEM (+0.1%), WAPCO (+4.3%), MANSARD (+3.8%) and LINKASSURE (+4.2%) drove the Industrial Goods (+1.8%) and Insurance indices (+1.0%) higher.
Market breadth (advance/decline ratio) – a measure of investor sentiment- improved significantly to 8.2x from 3.4x recorded previously consequent on 49 stocks advancing against 6 decliners.
The day’s top performers were DANGFLOUR (+10.1%), MAYBAKER (+10.0%) and DIAMOND (+9.9%) while NEM (-4.8%), CUSTODIAN (-4.8%) and NEIMETH (-4.3%) were the worst performers.
“In line with expectation, the market closed in the green today, hence we anticipate a positive close at the end of the week buoyed by a broad based rally,” analysts at Afrinvest said.