Nigeria’s equities benchmark index closed in the green for the fifth consecutive day Tuesday, rising 1.37 percent to settle at 38,494.43 points – a level last achieved 37 months ago (October 2014).
Thus, year-to-date return of the benchmark index expanded to 43.2 percent while market capitalization rose by N181.0 billion to close at N13.4 billion.
Although the rally was broad-based, the day’s positive close can be largely attributed to gains in bellwethers, DANGCEM (+1.7%), NIGERIAN BREWERIES (+3.4%) GUARANTY (+0.7%), and ZENITH (+0.6%). In the same vein, activity level improved as volume and value traded increased 4.4 percent and 18.3 percent to 522.4 million units and N7.5 billion respectively.
Sector performance remained mixed despite the markedly positive market performance as three indices closed higher and the other two indices trended southwards.
The consumer goods index led the three gainers, up 1.7 percent following sustained buying interest in NIGERIAN BREWERIES (+3.4%), DANSUGAR (+2.7%) and UNILEVER (+3.1%).
The other two gainers – banking and industrial goods indices – advanced 1.3 percent and 1.1 percent on the back of price appreciations in UBA (+4.0%), GUARANTY (+0.7%), ZENITH (+0.6%) and DANGCEM (+1.7%).
On the flipside, the insurance index was dragged 0.6 percent lower by losses in AIICO (-3.6%) and CONTINSURE (-5.0%), while the Oil & Gas index shed 0.4 percent due to profit taking in FORTE (-3.9%).
Investor sentiment as measured by market breadth strengthened to 2.8x weakened (from 0.8x at previous close) with 31 stocks advancing versus 11 decliners.
The outperforming stocks are LEARNAFRCA (+8.2%), CADBURY (+7.4%) and FCMB (+7.1%) while CONTINSURE (-5.0%), FORTE (-3.9%) and AIICO (-3.6%) are the worst performing stocks.
“While we maintain a positive near-term outlook for market due to year-end portfolio re-balancing by portfolio managers, we do not rule out profit-taking in tomorrow’s session by traders,” Afrinvest analysts said.