The Nigerian equities market Tuesday reversed the negative performance recorded at the start of the week as benchmark index gained 0.68 percent to close at 37,503.73 points, driving year-to-date gain to 39.6 percent. Global stocks were also higher on the day.
The day’s positive performance was mainly buoyed by buy interest in NIGERIAN BREWERIES (+4.9%), STANBIC (+4.6%) and DANGCEM (+0.4%).
Accordingly, market capitalization gained N88.1 billion to settle at N13.1 trillion. Market activity level equally improved as volume and value traded rose 16.9 percent and 0.5 percent to settle at 1.1 billion units and N4.8 billion respectively.
Sectorial performance was mixed as three of five indices under coverage trended northwards, one closed in the red and the other flat. The consumer goods index emerged the top gainer, up 0.9 percent owing to price appreciation in NIGERIAN BREWERIES (+4.9%)and DANGFLOUR (+1.6%).
The industrial goods and banking trailed, appreciating 0.3 percent apiece on account of upticks in DANGCEM (+0.4%) and ACCESS (+1.9%) respectively.
The oil & gas index was the lone loser, down 0.3 percent due to a drag in MOBIL (-3.2%), while the insurance index closed the day flat.
Investor sentiment as measured by market breadth (advance/decline ratio) improved significantly as 24 stocks advanced against 10 decliners to close at 2.4x from 0.8x recorded the previous session.
The day’s best performing stocks were ETERNA (+5.0%), NIGERIAN BREWERIES (+4.9%) and NAHCO (+4.9%) while the worst performers were PZ (-4.8%), AIICO (-3.6%) and MOBIL (-3.2%).
Analysts at Afrinvest said given the day’s performance and improved market breadth, they expect market performance and sentiment in the near term to remain positive as investors continue to take positions in anticipation of year-end rally.
On the global stage, European bourses were higher Tuesday as investors digested comments from the next Federal Reserve chair and looked out for tax reform plans in the U.S.
The pan-European Stoxx 600 was 0.58 percent higher with almost all sectors trading in positive territory. Oil and gas stocks were the top performers, amid individual stock news and expectations that OPEC members could extend a production cut deal.
Banking stocks meantime were trading positively after the Bank of England released the latest results of its stress tests. For the first time since 2014 none of the banks assessed need to raise extra capital. The scenario of the tests included risks that could be associated with Brexit, including a sharp fall in house prices.
In the U.S Amazon led S&P 500 and Dow to record highs after strong online sales for Cyber Monday, leading the broader U.S. stock market higher.
The e-commerce giant saw its shares climb 0.2 percent after Cyber Monday sales were projected to hit $6.59 billion by Adobe Insights, which would make for the largest ever online sum for a U.S. shopping day.
Amazon’s stock has been on fire for the past week, rising more than 5 percent, as the holiday shopping season kicks off. Consumers spent a record $5.03 billion online during Black Friday, according to Adobe.
The company also got a boost from a price-target increase at Goldman Sachs. Analysts at the investment bank raised their price target to $1,450 from $1,300, noting Amazon’s “pace of innovation” and “increasing price flexibility.” Amazon shares traded at about $1,200 on Tuesday.