The domestic equities market closed in the green on the back of positive sentiment surrounding the earnings results. Consequently, the NSE All-Share Index (ASI) rose 158bps to 29,437.60 points due to gains in NESTLE (+10.0%), DANGCEM (+2.2%) and ETI (+7.6%). Similarly, investors gained ₦239.0bn as market capitalisation increased to ₦15.4tn and YTD return improved to 9.7%. Activity level was mixed as volume traded fell 2.7% to 375.2m units while value traded rose 59.0% to ₦4.6bn. The most traded stocks by volume were ZENITH (46.7m units), FIDELITY (33.5m units) and ETI (27.5m units) while BUACEMENT (₦1.0bn), ZENITH (₦1.0bn) and GUARANTY (₦394.1m) led by value.
Performance across sectors was bullish as 5 of the 6 indices under our coverage recorded gains save the AFR-ICT index which closed flat. The Consumer Goods and Oil & Gas indices advanced 5.7% and 2.1% respectively due to buying interest in NESTLE (+10.0%), FLOURMILL (+6.4%), OANDO (+9.8%) and TOTAL (+6.0%). Similarly, the Insurance and Banking indices rose 1.5% and 1.2% respectively following gains in CUSTODIAN (+10.0%), NEM (+9.9%), ETI (+7.6%) and FBNH (+3.3%). Lastly, price appreciation in DANGCEM (+2.2%) drove the Industrial Goods index higher by 1.1%.
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 8.2x from the 23.0x recorded previously as 41 stocks gained against the 5 that declined. NESTLE (+10.0%), CUSTODIAN (+10.0%) and NEM (+9.9%) were top gainers while ROYALEX (-8.0%), CUTIX (-6.8%) and HONYFLOUR (-1.0%) led laggards. We maintain our postiion that the performance of the domestic equities market would be dictated by the earnings result.
Corporate Actions
MTN NIGERIA Plc. (Unaudited 9M:2020 Result): Revenue rose 13.9% y/y to ₦975.8bn from ₦856.5bn in Q3:2019 while profit after tax declined 3.3% to ₦144.2bn from ₦149.2bn in Q3:2019.
CUSTODIAN Plc. (Unaudited 9M:2020 Result): Gross revenue advanced 24.2% y/y to ₦57.5bn from ₦46.3bn in Q3:2019 while profit after tax rose 10.5% to ₦6.0bn from ₦5.5bn in Q3:2019.
TOTAL Plc. (Unaudited 9M:2020 Result): Revenue fell 31.6% y/y to ₦151.7bn from ₦221.8bn in Q3:2019 while the company posted a profit after tax of ₦500.1m from a loss of ₦204.8m in Q3:2019.
Market Statistics for Wednesday, 28th October 2020
| Market Cap (N’bn) | 15,386.6 |
| Market Cap (US$’bn) | 39.9 |
| NSE All-Share Index | 29,437.60 |
| Daily Performance % | 1.6 |
| WTD Performance % | 2.6 |
| MTD Performance % | 9.7 |
| QTD Performance % | 9.7 |
| YTD Performance % | 9.7 |
| Daily Volume (Million) | 375.2 |
| Daily Value (N’bn) | 4.6 |
| Daily Value (US$’m) | 12.0 |
Afrinvest
