Just yesterday, Monday 21 August, Nigeria bourse took a good look at the dance steps of Dangote Cement on the floor of the Nigerian Stock Exchange and responded accordingly. Losses of 4.2 percent recorded by the cement manufacturing giant led to a 0.5 percent loss by the market. Then cometh Tuesday, 22 August, and the market couldn’t wait to follow the re-calibrated dance moves of the biggest stock on the market, rebounding to positive territory on account of the 4.3 percent gains recorded by the company.
The bourse clawed back Monday’s negative posting to reach positive territory by advancing 1.0 percent to settle at 36,962.48 points. This is just as year-to-date gain improved to 37.5 percent.
To this end, market capitalization added N130.3 billion to settle at N12.7 trillion.
Detail appraisal of the market indicates that without gains in Dangote Cement (DANGCEM), market benchmark index would have declined by 0.3 percent, which would have continued the 0.5 percent recorded Monday.
However, activity level waned as both volume and value traded fell 33.7 percent and 41.4 percent to 244.3 million units and N3.7 billion respectively.
Performance across sectors remained mixed. The industrial goods index led sector gainers, up 2.1 percent largely due to an uptick in DANGCEM (+4.3%).
Likewise, gains in NESTLE (+1.7%) buoyed the consumer goods index to close 0.3 percent higher. Conversely, losses in ZENITH (-3.4%) and ACCESS (-0.5%) dragged the banking index down by 1.0 percent, while the oil & gas index slid 0.3 percent on account of price depreciation in CONOIL (-9.7%) and MOBIL (-5.0%).
The insurance index, however, closed flat.
Investor sentiment softened as market breadth retreated to 0.9x (from 1.6x yesterday) consequent on 21 stocks advancing against 22 decliners.
CAVERTON (+5.0%), TOTAL (+5.0%) and CILEASING (+4.9%) were the best performers while CONOIL (-9.7%), NEIMETH (-5.9%) and MOBIL (-5.0%) were Tuesday’s worst performers.
On market performance, analysts say the negative close experienced in previous sessions would present a potential upside for investors to source for a bargain in value stocks.
To this end, they envisage a rebound in investors’ sentiment in subsequent trading sessions on account of the positive developments in the economy.