Home Stock Market Bargain hunting bolsters stock market performance, ASI up 2bps

Bargain hunting bolsters stock market performance, ASI up 2bps

by Business News Report

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 

Market Cap (N’bn)21,925.4
Market Cap (US$’bn)53.3
NGX All-Share Index42,018.92
Daily Performance %0.0
WTD Performance %(0.4)
MTD Performance %(2.8)
QTD Performance %4.5
YTD Performance %4.3
Daily Volume (Million)639.4
Daily Value (N’bn)6.6
Daily Value (US$’m)16.1

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