Market Summary: Year-to-Date Return Settles at 15.85%

The NSEASI advanced by 1.22% following the price advancements witnessed on 42 counters, led by DIAMONDBNK (+9.85%). Also, the price shedding witnessed on only 12 stocks, caused the market breadth to close positive at 3.50x. Consequently, market cap gained NGN190.96bn to close at NGN15.88trn at the sound of the closing bell.

Leading Sectors

Industrial Goods Sector: Sector Outperforms the Market

Although the sector’s most capitalized stock, DANGCEM, witnessed more offers than bids at some point during trades, the counter advanced by 3.04% to close at NGN268.00. In addition, investors were also bullish on some medium and large cap stocks such as; WAPCO (+0.67%) and CCNN (+0.56%) which advanced to NGN52.35 and NGN18.00 respectively. As a result, theNSEIND index advanced by 1.73%, with a Year-to-Date return of 17.77%.

Banking Sector: Bullish Sentiments Persist

The sector sustained the positive momentum witnessed at the end of the previous week. As a result, impressive gains were recorded on DIAMONDBNK (+9.85%), which closed as the overall top gainer in the market. Other tier-2 banks like FIDELITYBK(+9.60%), SKYEBANK (+9.38%) and WEMABANK (+7.02%) also featured on the market’s top 10 gainers’ list.

Finally, positive sentiments were witnessed in the insurance (+0.56%) and oil and gas sectors (+0.28%), as indicated by the uptick witnessed in both sector indices. In contrast, the consumer goods sector index, NSEFBT10, closed in the negative territory following losses recorded on medium and bellwether stocks like NB (-1.19%), GUINNESS (-1.79%), FLOURMILLS(-1.59%) and DANGSUGAR (-4.56%).

Based on our analysis, we attribute the positive close to bargain hunting activities on stocks that initially shed value, particularly in the banking sector. We also note the impact of the price advancement on DANGCEM to the overall market performance.

Following the implementation of the NSE’s new pricing methodology, four stocks which include ABCTRANS, ROYALEX, PRESTIGE and LASACO fell below NGN0.50 to close at NGN0.48.

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