Nigerian stocks sustain bullish run, close 2.4% higher

The equities market Monday opened the week positive, extending gains from the previous week into the third consecutive trading session as the All Share Index rose 2.4 percent to settle at 38,849.65 points while YTD return expanded to 4.2 percent

As a result, market capitalization rose by N329.7billion to settle at N14.2trillion.

Today’s performance was boosted by price appreciation in the shares of Dangote Cement by 5.0 percent, Guaranteed Trust Bank 2.3 percent and Zenith Bank recorded 2.5 percent. However, activity level was mixed as volume traded declined by 19.7 percent to 604.5million Ordinary shares while value traded shares climbed by 46.7percent higher to close at N16.1billionn.

The Industrial Goods index led the gainers chart, rising by 2.3 percent primarily due to price appreciation in Dangote Dangote Cement by 5.0 percent. The Banking index trailed, rising by 2.0percent on the back of gains in GTBank, Zenith Bank while uptick in Mobil Oil5.0 percent and CONOIL 10.2 percent pushed the Oil & Gas index 1.7 percent higher. Also, the Consumer Goods and Insurance indices rose 1.1 percent apiece consequent on investors taking position in Nigerian Breweris.4percent Guinness Nigeria 4.6 percent and Mansard 4.4 percent.

Investor sentiment – measured by market breadth (advance/ decline ratio) – weakened to 4.1x from 4.4x recorded the previous Friday as 37 stocks advanced against 9 decliners.

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The day’s best performers were CONOIL (+10.2%), UNITY (+9.7%) and CADBURY(+8.6%) while the worst performing stocks were VITAFOAM (-4.9%), CILEASING (-4.9%) and MEYER (-4.3%).

“In line with expectation, market performance was positive today as investor sentiment remained strong. Hence, we expect the trend to be sustained in subsequent trading sessions against the backdrop of a broad based rally across sectors,” analysts at Afriinvest said.