Domestic Equities Market: Bullish Outing on the Bourse… ASI up 0.9%

An Extraction of the Afrinvest Weekly Economic & Market Report for June 19th, 2024

Photo Credit: NGX

This week, bulls dominated four out of the five trading sessions, culminating to a 87bps rise in the NGX-ASI to 100,539.40 points. Consequently, market capitalisation rose 0.9% w/w to ₦56.9tn, while YTD return increased to 34.5% (previously 33.3%). However, activity level worsened as both average volume and value traded fell 9.9% and 51.1% w/w to 498.6m units and ₦8.3bn respectively. The volume chart was led by JAIZBANK (583.6m units), CUTIX (224.8m units), and ZENITH (168.7m units) while in terms of value traded, ZENITH (₦6.6bn), GTCO (₦6.4bn), and ACCESSCORP (₦2.5bn) topped the chart.

Performance across our coverage sectors was negative as four indices lost while the other two gained. The AFR-ICT and Industrial Goods indices led the advancers, up 3.1% and 0.1% w/w respectively, buoyed by gains in AIRTELAF (+4.8%), OMATEK (+4.3%), CUTIX (+29.7%), and WAPCO (+1.1%). On the flip side, the Insurance and Consumer Goods indices led the laggards, down 4.9% and 0.2% w/w respectively, following price decline in LINKASSURE (-17.0%), VERITASK (-11.7%), VITAFOAM (-10.4%), and MCNICHOL (-9.0%). The Oil & Gas and Banking indices shed 10bps and 5bps w/w respectively, due to selloffs in JAPAULGOLD (-4.0%), WEMABANK (-5.3%), JAIZBANK (-3.6%), and STANBIC (-1.5%).

Investor sentiment, as measured by market breadth, improved to 0.0x (previously -0.1x) as 35 stocks gained, 34 lost and 81 closed flat. UCAP (+42.8%), AFRIPRUD (+33.8%), and CUTIX (+29.7%) were the top performing stocks for the week while LINKASSURE (-17.0%), VERITASK (-11.7%), and VITAFOAM (-10.4%) were the worst performing stocks for the week. Next week, we anticipate a mildly negative close, driven in part by cautious trading on banking tickers due to increased spotlighting on the sector and on the other, trading attraction to the bond PMA slated for Tuesday.