Nigerian equities maintain uptrend as gains in FBNH, Zenith, Dangote Cement help push bourse index up 0.56%

Nigerian equities maintained uptrend in the 3rd trading session of the week as bourse’s benchmark index rose 0.56 percent to settle at 36,880.20 points amid oil price rally at the international market, which took Brent Crude to $61.15 per barrel, 43.8 percent above the 2017 Federal Government budget benchmark.

Market performance on the day saw year-to-date gain expanding to 37.3 percent, just as market capitalization increased by N71.6 billion to N12.8 trillion.

The day’s positive performance was influenced majorly by gains in DANGCEM (+1.6%%), ZENITH (+1.5%) and FBNH (+5.0%). However, activity level was mixed as volume traded declined 3.8 percent to 249.3 million units while value traded spiked 70.3 percent to N5.2 billion.

Performance across sectors was bullish as all sector indices closed in the green. The industrial goods index led gainers, up 0.9 percent on the back of gains in DANGCEM (+1.6%) and WAPCO (+0.1%).

The oil & gas index followed, rising 0.4 percent due to price appreciation in MOBIL (+3.9%), while the banking and insurance indices each climbed 0.2 percent as investors took positions in ZENITH (+1.5%), FIDELITY (+1.3%), NEM (+4.0%) and AIICO (+3.9%).

The consumer goods index marginally added 0.01 percent, propped by buying interest in DANGSUGAR (+1.5%) and FLOURMILL (+1.9%).

Market breadth (advancers/decliners ratio), which measures investor sentiment strengthened to 1.0x (from 0.9x the previous day) with 22 stocks advancing relative to 21 stocks that declined. Top performers were BERGER (+5.0%), FBNH (+5.0%) and PRESCO (+5.0%), while the worst performers were AIRSERVICE (-4.9%), VITAFOAM (-4.0%) and NASCON (-4.0%).

Analysts expect the gains in the oil market to further support banks asset quality metrics and fiscal balance, and aid the economic recovery and strengthen the case for staying invested in Nigerian assets.