Trading at the Nigerian stocks market extended gains for the 16th straight day on Thursday to post its longest winning streak in more than two-years due to improving sentiment following strong half-year earnings from several listed mid-sized companies.
The All share index pass 37,000 point psychological mark, to hit a 33-month high, a level last reached in October 2014.
The Equities market thus sustained its bullish momentum the All Share Index (ASI) rose 1.4 per cent to 37,245.17 points, further buoying the Year-to-Date gain to 38.6 per cent, while market capitalisation added N173.8 billion to close at N12.8 trillion. Rally in Consumer Goods and Banking bellwethers – NIGERIAN BREWERIES (+4.7%), GUARANTY (+3.6%) and NESTLE (+5.0%) – drove the market performance today. Similarly, activity level improved as volume and value traded surged 61.9 per cent and 72.5 per cent to close at 542.8 million units and N8.0 billion respectively.
Mixed Performance across sectors
Performance across the various sectors was mixed as 3 of 5 indices closed in the green. The Consumer Goods and Insurance indices advanced 3.8 per cent and 2.2 per cent on account of gains in NIGERIAN BREWERIES (+4.7%) and MANSARD (+4.8%). Relatedly, investors reacted positively to CONTINSURE’s (+4.6%) impressive H1:2017 earnings report which was released yesterday while another Insurer, CUSTODYIN, released yet another solid half year result with Gross Revenue and PAT rising 15.6 per cent and 31.8 per cent year on year to N19.8 billion and N3.8 billion respectively. Similarly, the Banking index advanced 1.7 per cent owing to sustained rally in GUARANTY (+3.6%) and ETI (+5.0%). FBNH and STERLING also published H1: 2017 results with Gross earnings rising 7.8 per cent and 14.1 per cent to N288.8 billion and N57.1 billion while PAT declined 17.9 per cent and 5.4 per cent to N29.5 billion and N3.8 billion respectively. On the other hand, the Oil & Gas index slid 1.0% due to losses in OANDO (-4.8%) while the Industrial Goods index fell 0.5% due to profit taking in WAPCO (-1.7%).
Investor Sentiment Strengthens
In line with the sustained bullish momentum, investor sentiment measured by market breadth stayed positive and advanced to 2.2x (37 advancers against 17 decliners) from 1.8x recorded yesterday. Top gainers were CONOIL (+10.2%), CHAMPION (+6.7%) and NESTLE (+5.0%) whilst the top losers were CADBURY (-9.7%), UAC-PROP (-5.5%) and MORISON (-4.9%). As H1:2017 earnings scorecards continue to trickle in, we expect performance in the equities market to remain upbeat as investors take position in fundamentally sound stocks.
Market Statistics Thursday, 27th July 2017
Market Cap (N’bn) 12,836.6
Market Cap (US$’bn) 42.0
NSE All-Share Index 37,245.17
Daily Performance % 1.4
Week Performance % 10.5
YTD Performance % 38.6
Daily Volume (Million) 542.8
Daily Value (N’bn) 8.0
Daily Value (US$’m) 26.2
