Domestic Equities Market: Local Bourse Rebounds… ASI up 0.7% w/w

An Extraction of the Afrinvest Weekly Economic & Market Report for June 14th, 2024

Photo Credit: NGX

The domestic equities market closed the week in the green as the NGX-ASI recorded a w/w gain of 71bps to close at 99,925.29 points. Likewise, market capitalisation rose by 0.7% w/w to ₦56.5tn, while YTD return improved to 33.6%. Activity level improved as average volume and value traded rose 93.3% and 78.9% w/w respectively, to 658.3m units and ₦10.9bn. FBNH (946.1m units), FIDELITY (938.8m units), and ACCESSCORP (222.7m units) were the top traded stocks by volume for the week, while FBNH (₦21.7bn), FIDELITY (₦9.4bn), and ZENITH (₦6.3bn) led by value.

Performance across sectors under our coverage was bullish as five indices gained while AFR-ICT index fell 1.5% w/w due to selloffs on MTNN (-4.0%). The Oil & Gas and Banking indices led the advancers, up 5.3% and 3.6% w/w respectively, following price appreciation in TOTAL (+21.0%), OANDO (+4.1%), ZENITH (+8.3%), and ACCESSCORP (+8.1%). Trailing, the Insurance and Consumer Goods indices rose 3.4% and 1.1% w/w respectively, buoyed by gains in REGALINS (+23.7%), VERITASK (+17.5%), GUINNESS (+19.2%), and NB (+15.7%). Buy interest in CUTIX (+28.2%) and WAPCO (+6.2%) pulled the Industrial Goods index up 0.3% w/w.

Investor sentiment as measured by market breadth improved to 0.3x from 0.0x in the prior week, as 49 stocks gained, 24 lost while 78 closed flat. CUTIX (+28.2%), REGALINS (+23.7%), and CHAMS (+23.4%) led the top gainers while DAAR (-17.5%), CILEASIN (-14.7%), and CUSTODIAN (-11.0%) led the decliners. In the coming week, we expect a mildly bullish market performance on account of improved investor sentiment.