Nigeria equities’ week-to-date gain in 3-month high as market capitalization exceeds N13trn

Nigerian stocks sustained positive run Thursday, up 0.62 percent against the backdrop of buying interest in bellwether industrial goods and banking stocks – DANGCEM (+1.7%), WAPCO (+1.6%) and GUARANTY (+1.1%) and ZENITH (+0.6%).

The performance thus closed the week largely bullish as large, mid, and small cap stocks rallied. To this end benchmark index appreciated 1.5 percent week to date to close at a 3-month high of 37,944.60 points, while year-to-date and month-to-date returns advanced 41.2 percent and 3.4 percent respectively.

Market capitalization in the week increased by N205.5 billion to N13.2 trillion, exceeding the N13.0 trillion mark for the second time this year.

Similarly, activity level improved as average volume and value traded increased 70.8 percent and 14.3 percent w-o-w to 745.5 million units and N5.2 billion respectively.

The week’s top-traded stocks by volume were WAPIC (1.4bn), FIDELITY (224.3m) and FBNH (164.6m) while ZENITH (N3.9bn), NIGERIAN BREWERIES (N3.4bn), and GUARANTY (N1.5bn) led the volume chart.

The Nigerian bourse started the week on a negative note, as profit taking in banking stocks – ETI (-3.0%), ZENITH (-1.0%) and ACCESS (-0.6%) – dragged the all-share index (ASI) 31bps lower.

However, the market rebounded on Tuesday, majorly on the back of gains in NIGERIAN BREWERIES (+4.9%), STANBIC (+4.6%) and DANGCEM (+0.4%), which drove the ASI 68bps higher. In the same vein, the market performed positively on Wednesday with the ASI rising 55bps due broad-based rally across sectors.

Performance across sectors was largely bullish this week as all the indices under coverage advanced week to date (WTD). The insurance index led the gainers chart, up 1.5 percent WTD due to price appreciations in MANSARD (+4.9%) and CONTISURE (+4.5%).

The banking and oil & gas indices trailed, rising 1.4 percent apiece – buoyed by gains in FIDELITY (+21.2%), GUARANTY (+2.4%), FORTE (+15.0%) and TOTAL (+4.8%). Following closely was the consumer goods index, which climbed 1.3 percent WTD as DANGSUGAR (+4.7%) and DANGFLOUR (+11.6%) rallied. The Industrial Goods index gained 1.1% to close out the positive performance, buoyed by buying interest in DANGCEM (+3.8%).

Investor sentiment, measured by market breadth, strengthened to 1.7x (38 advancers/28 decliners) from 1.4x recorded the previous week.

Top performing stocks this week were FIDELITY (+21.2%), FORTE (+15.0%) and LAWUNION (+14.8%). MOBIL (-6.1%), UPL (-5.5%) and NEIMETH (-4.9%) were the worst performers.

The strong performance of the market Thursday, which is the index rebalancing date for MSCI Frontier Market indices, perhaps indicates Nigeria had a net inflow of funds, said analysts at Afrinvest.

“Although we anticipate a slight pullback in early trades next week, due to profit-taking, we re-iterate our positive near term outlook for the market as fund managers continue to rebalance portfolios ahead of fiscal year-end,” they opined.