Nigerian equities market capitalization hits N15trn record high as index gains 2.9%

Following recent uptrend in performance, the Nigerian equities market closed positive Thursday as benchmark index gained 2.9 percent to settle at 43,041.54 points, just as market capitalization hits record high of N15.3 trillion. Year-to-date return thus expanded to 13.5 percent.

Specifically, stocks recorded gains to the tune of N436.1 billion on the day as market capitalization rose to an all-time high of N15.3 trillion.

The day’s performance was propped up by sustained buying interest in market bellwethers – DANGCEM (+2.0%), GUARANTY (+4.9%) and NIGERIAN BREWERIES (+4.6%). On a similar note, activity level improved as volume and value traded inched 6.8 percent and 30.7 percent higher to 1.2 billion units and N17.4 billion respectively.

Performance across sectors was bullish as all indices closed in the green. The banking index was the top performer, rising 4.4 percent on the back of buying interest across the board. The performance was driven largely by tier-1 banks – GUARANTY (+4.9%) and ZENITH (+3.1%).

The industrial goods index followed, closing 3.3 percent as an upswing in DANGCEM (+2.0%) buoyed performance while the consumer goods index rose 2.3 percent following upticks in NIGERIAN BREWERIES (+4.6%) and GUINNESS (+9.6%).

Financial stocks lead Nigerian equities in 2017, account for 31.62% of market cap

Similarly, price appreciation in SEPLAT (+2.3%) and FORTE (+8.7%) drove the oil & gas index 2.7 percent northwards while the Insurance index recorded a 1.7% increase following a rally in MANSARD (+8.4%) and AIICO (+3.5%).

Investor sentiment- measured by market breadth (advance/ decline ratio) moderated to 5.6x from 20.0x recorded the prior session consequent on 56 stocks advancing against 10 decliners.

The day’s best performing stocks were HONEYFLOUR (+10.0%), CCNN (+10.0%) and CHAMPION (+9.9%) while UPL (-4.7%), MEYER (-4.5%) and LEARNAFRCA (-4.0%) led laggards.

Despite the decline in market breadth, sentiment remained positive and analysts are expecting the market to close positive in the week.