September 30, 2021/United Capital Research
The domestic stock market reversed its bearish run yesterday, after two consecutive days in the red. The All-Share Index (ASI) climbed by 1.9% to close at 39,592.29 points as sentiment noticeably improved and investors took positions in attractively valued tickers. The bourse’s market capitalization rose by N382.1bn to hit N20.6tn, as the YTD loss moderated to 1.7%. In terms of activity levels, the total volume traded weakened by 9.9%, from 526.3m to 474.4m, while the total value traded rose 31.6% from N3.0bn to N4.0bn.
Across sectors, the performance tilted bullish, with three of the five sectors we cover closing in the green. The Industrial sector led the pack as it gained 3.6% due to buying interest in DANGCEM (+6.5%). Similarly, the Consumer goods and Banking sectors closed higher by 3.1% and 0.8% respectively, as bargain hunting in NNFM (+6.9%), NESTLE (+6.4%), FBNH (+6.6%) and JAIZBANK (+5.1%) propelled the sectors higher. On the other hand, the Oil and Gas sector declined by 0.2% as profit-taking activities in OANDO (-1.0%) weighed on the index. The Insurance sector was the biggest loser, shedding 2.0%, on account of selloffs in MANSARD (-10.0%) and SOVRENIN (-8.3%).
Investor sentiment as measured by market breadth improved to 1.6x as 23 stocks advanced, and 14 stocks declined. Looking ahead to the last trading day of the holiday-shortened week, we expect a positive turnout due to the observed improvement in investor sentiment.
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