Bargain hunting bolsters stock market performance, ASI up 2bps

Today, the local bourse rebounded after 6 consecutive days of losses as investors hunted for bargains in WAPCO (+5.4%), ZENITH (+2.1%), and GTCO (+0.8%). Accordingly, the NGX All-Share Index gained 2bps to 42,018.92 points. YTD return remained at 4.3% while market capitalisation rose ₦5.4bn to ₦21.9tn. Trading activity strengthened as volume and value traded rose 51.5% and 48.2% respectively to 639.4m units and ₦6.6bn. STERLNBANK (81.0m units), ETI (19.8m units), and GTCO (19.4m units) led by volume while GTCO (₦467.0m), FLOURMILL (₦266.6m), and ETI (₦159.4m) led by value.

Across our sector coverage, performance was mixed as 3 indices gained, 2 indices lost while the AFR-ICT index closed flat. The Insurance index led gainers, up 114bps following buying interest in NEM (+7.6%) and ROYALEX (-6.9%). Similarly, the Banking and Industrial Goods indices rebounded, up 113bps and 29bps respectively due to bargain hunting in ZENITH (+2.1%), GTCO (+0.8%), and WAPCO (+5.4%). On the other hand, the Oil & Gas and Consumer Goods indices shed 270bps and 52bps respectively on the back of sell pressure on SEPLAT (-5.4%), OANDO (-2.2%),  DANGSUGAR (-3.2%), and FLOURMILL (-2.3%). 

Investor sentiment, as measured by market breadth (advance/decline ratio), improved to 1.1x from 0.4x as 20 stocks advanced while 19 stocks declined. ABBEYBDS (+9.5%), MEYER (+8.3%), and NEM (+7.6%) led gainers while GLAXOSMITH (-9.3%), SEPLAT(-5.4%), and JAIZBANK (-4.5%) led decliners. We expect the positive performance to be sustained in the next trading session on the back of the improved investor sentiment. FBN Holdings Plc (“FBNH”) released its 9M:2021 results which showed a 2.8% and 15.4% y/y decrease in gross earnings and net interest income to ₦427.0bn and ₦163.0bn respectively. Operating profit also declined 16.4% to ₦52.9bn following a 9.4% growth in OPEX to ₦229.5bn while PAT shed 40.2% to ₦40.8bn.

Market Statistics for Tuesday, 7th December 2021