Bargain hunting boosts performance at Nigerian Stock Exchange, ASI gains 0.5%

Buying interest in BUACEMENT (+8.5%), WAPCO (+5.0%) and STERLING (+9.6%) pushed the benchmark index up by 47bps to close at 24,595.05 points. As a result, YTD loss eased to -8.4% while market capitalisation appreciated ₦60.4bn to ₦12.8tn. Activity level waned as volume and value traded fell 29.5% and 67.0% to 198.0m units and ₦1.0bn respectively. The most active stocks by volume were WAPIC (30.3m units), UBA (20.2m units) and TRANSCORP (19.4m units) while GUARANTY (₦158.0m), UBA (₦123.5m) and ZENITH (₦90.8m) led by value.

Sectors under our coverage recorded a bearish performance as only 2 of 6 indices gained. The Banking index (-0.9%) led the losers following sell-offs in ZENITH (-2.5%) and GUARANTY (-0.9%). Trailing, the Insurance (-0.8%) and Consumer Goods (-0.5%) indices declined as a result of price weakness in WAPIC (-5.7%), AIICO (-2.2%), DANGSUGAR (-2.5%) and FLOURMILL (-1.8%) . On the flip side, the Industrial Goods (+1.4%) and Oil & Gas (+0.3%) indices advanced, due to price appreciation in BUACEMENT (+8.5%), WAPCO (+5.0%) and OANDO (+3.5%). Lastly, AFR-ICT index closed flat.

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 0.5x from the 0.3x recorded in the previous session as 12 stocks advanced against 22 losers. The top gainers were CADBURY (+9.6%), STERLING (+9.6%) and CHAMS (+9.5%) while NEIMETH (-9.7%), LEARNAFRICA (-7.7%) and WAPIC (-5.7%) were the top decliners. We expect bargain hunting to lift the benchmark index in subsequent trading sessions.

Market Statistics for Wednesday, 1st July 2020 

Market Cap (N’bn) 12,830.2
Market Cap (US$’bn) 35.5
NSE All-Share Index 24,595.05
Daily Performance % 0.4
WTD Performance % (2.3)
MTD Performance % (2.7)
QTD Performance % 0.5
YTD Performance % (8.4)
Daily Volume (Million) 198.0
Daily Value (N’bn) 1.0
Daily Value (US$’m) 2.9

Source: Afrinvest

Categories: Finance,News,Stock Market

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