Equities rise N1.7trn in one week on Dangote, BUA Cement gains

Nigerian equity market got a boost last week, topping N1.7 trillion to close at N25.8 trillion. The market rose on the back of Airtel, Dangote Cemnet and BUA Cement among others.

Buying interest in Bellwether stocks  saw the local market closed bullish.  AIRTELAF (+14.2 per cent), DANGCEM (+10.0 per cent), MTNN (+6.6 per cent), BUACEMENT (+9.7 per cent) and BUAFOODS (+11.2 per cent).

Consequently, the NGX-ASI rose 6.9 per cent week-on-week (w/w) to settle at 47,554.34 points, while Year-to-Date (YTD) return advanced to 11.3 per cent (previously: 4.2 per cent) and market capitalisation increased by N1.7 trillion to N25.9 trillion.

Activity level improved as average volume and value traded rose 2.1 per cent and 77.0 per cent to 141.8 million units and N3.1 billion respectively.

The top traded stocks by volume were TRANSCORP (93.8 million units), AIICO (49.1 million units) and ZENITH (41.4 million units) while MTNN (N2.6 billion), ZENITH (N913.0 million) and AIRTELAF (N894.4 million) were the top traded stocks by value.

Performance across sectors was bullish as five of six indices under our coverage closed in the green. The AFR-ICT index led advancers, up 10.7 per cent w/w following gains in AIRTELAF (+14.2 per cent) and MTNN (+6.6 per cent).

Trailing, the Industrial Goods and Insurance indices rose 9.5 per cent and 5.1 per cent w/w respectively due to buying interest in DANGCEM (+10.0 per cent), BUACEMENT (+9.7 per cent), NEM (+9.9 per cent), and CORNERS (+15.9 per cent).

On price appreciation, ACCESSCORP stood at (+6.2 per cent), ZENITH (+2.6 per cent), BUAFOODS (+11.2 per cent), and NB (+18.7 per cent) pushed the Banking and Consumer Goods indices higher by 3.1 per cent and 0.2 per cent w/w respectively. Conversely, the Oil & Gas index was the sole loser, down 1.3 per cent w/w on account of sell pressure in SEPLAT (-3.6 per cent) and TOTAL (-2.0 per cent).

Investor sentiment, as measured by market breadth, improved to 0.34x (previously: -0.02x) as 49 stocks advanced, 19 declined and 89 closed flat. The top outperforming stocks for the week were NB (+18.7 per cent), SOVRENINS (+16.7 per cent), and PRESTIGE (+16.2 per cent) while the top underperforming stocks were NESTLE (-20.7 per cent), CAPHOTEL (-10.0 per cent), and SCOA (-9.3 per cent).

Afrinvest analysts believe that in the coming week, the bullish streak would continue following renewed interest in the market. They however noted that, this sentiment might be short-lived as economic catalysts remain absent.