Nigerian stocks edge higher on buy interest in bellwethers as NSEASI gains 0.14%

Buy interest in NESTLE (+1.8%), ZENITH (+1.5%) and UNILEVER (+3.9%) and other major caps helped buoy market performance Monday pushing benchmark index, the NSEASI, up 14bps to close at 40,987.77 points.

The day’s performance thus extends gains from the previous week as market capitalization rose by N21.4 billion to N14.8 trillion. This is just as activity level strengthened with volume and value of shares traded increasing by 15.2 percent and 53.3 percent to 192.5 million units and N3.1 billion respectively.

The top traded stocks by volume were GUARANTY (37.6m), JAPAUL OIL (21.4m) and FIDELITY (13.2m) while the top traded stocks by value were GUARANTY (N1.7bn), ZENITH (N293.2m) and NIGERIAN BREWERIES (N158.2m).

Performance across sectors was mixed as three of five indices under coverage closed in the green. The industrial goods index led gainers, up 0.5 percent due to gains in WAPCO (+1.1%).

The banking and insurance indices followed, rising 0.3 percent and 0.2 percent respectively on the back of bargain hunting in ZENITH (+1.5%), UBA (+1.9%) and NEM (+5.0%).

Contrarily, the oil & gas index was the lone decliner, down 0.7 percent as profit-taking in 11 PLC (-5.0%) dragged the index. The consumer goods index closed flat.

Investor sentiment measured by market breadth (advance/decline ratio) weakened to 1.3x from 1.5x recorded previously, as 28 stocks advanced against 21 stocks that declined.

SKYE (+10.0%), OANDO (+9.4%) and JAIZBANK (+8.5%) were today’s best performers while UACPROP (-7.9%), 11 PLC (-5.0%) and VITAFOAM (-4.8%) declined the most.

A major development on the day was the NSE migrating ACCESS, WAPCO, SEPLAT and UBA to its premium board, which analyst say would improve sentiment on the four stocks. The analysts equally backed their earlier submission of a rebound in the market that has floundered in the last one and a half months

They specifically see market performance remaining upbeat on account of increased bargain hunting.

Global stocks equally edged higher Monday as geopolitical concerns diminished following a limited U.S.-led air strike on Syria in retaliation for a suspected chemical-weapons attack.

The Stoxx Europe 600 was up 0.1% shortly after markets opened, while crude oil prices slipped. Asian stock markets were mixed. Futures pointed to an opening gain of 0.2% for the S&P 500.

Investors breathed a sigh of relief after missile strikes late Friday by the U.S., U.K., and France on Syria didn’t lead to a major escalation in the seven-year-old conflict. A Pentagon official said that the single wave of strikes is complete for now, while in a Twitter post on Saturday, President Donald Trump said “Mission Accomplished!”

“Markets have already started this week in a risk-taking mood…with short-term geopolitical uncertainty scaling down,” analysts at Unicredit wrote in a note to clients.

Investors are instead refocusing on a slew of economic data and corporate earnings coming out this week. On Monday, traders will be looking at the latest U.S. retail sales data, an important gauge of the health of the economy. Also on tap this week is China’s first-quarter economic growth as well as data on March business activity.