Market Update: Gains in DANGCEM Bolster Market Performance

Notore

After closing negative in the last 2 trading sessions, the Benchmark index reversed the downtrend to close 8bps higher at 28,031.90 points on the back of positive sentiments in DANGCEM (+1.1%), UBA(+3.0%) and 7UP (+4.3%).

Accordingly, YTD loss improved to -2.1%. Market capitalization also added N7.7bn to settle at N9.6tn at the close of trade. In contrast to previous sessions, activity level strengthened as volume and value traded surged 86.4% and 79.6% to 348.8m units and N2.6bn respectively.

Consumer Goods Index Emerges Lone Gainer

Similar to yesterday’s trading session, sector performance was generally bearish today as all sector indices closed in red save for the Consumer Goods index which advanced 0.4% on account of gains in 7UP (+8.4%) and FLOURMILL (+5.0%).  Despite positive sentiment in DANGCEM, the Industrial Goods index contracted the most, losing 3.1% as a result of sell pressure on WAPCO (-9.5 %) and ASHAKACEM (-7.6%). The Insurance index followed, declining 0.4% against the backdrop of declines in CONTINSURE (-4.8%) and AIICO (-1.6%). Likewise, the Banking and Oil & Gas indices shed 0.3% and 0.1% respectively as losses in ETI (-2.3%), FCMB (-1.7%), OANDO (-5.0%) and TOTAL (-2.7%) weighed on both indices.

Investor Sentiment Remains Weak

Compared to the previous trading day, market breadth stayed flat at 0.9x (with 20 stocks advancing against 23 declining stocks). The best performing stocks were CONOIL (+8.8%), AIRSERVICE (+5.0%) and FLOURMILL (+5.0%) while WAPCO (-9.5%), ASHAKACEM (-7.6%) and OANDO (-5.0%) declined the most. We expect investors to remain cautious in subsequent trading session whilst awaiting third quarter results for 2016.

Daily Report culled from Afrinvest daily reports