(Greenwich Merchant Bank): Stocks returned to winning ways this week, with the All-Share Index and market capitalization climbing 2.19% higher to close at 34,885.51 points and NGN18.23trn. Against this backdrop, the YtD returns firmed up to +29.97%.
Activity level tapered as average volume and value of traded units fell -84.04% and -27.57% WoW to 363.24 million units and NGN5.16bn. For the week, NEIMETH rose 12.03% WoW to sit atop the gainers’ chart at NGN2.70. Conversely, JAPULOIL shed 11.11% WoW to NGN0.24 to be the week’s biggest decliner.
Across sectors, performance was uneven with the Industrial Goods sector (+4.4%) advancing the most, followed by the Oil & Gas (0.6%) and Insurance (0.3%) sectors. On the flip side, the Banking sector tanked -1.3% and the Consumer Goods space shed 0.5%.
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The Bulls remerged, shrugging off concerns at the start of the week after the NBS GDP report confirmed a recession in Q3. Specifically, the positive drive of the market was on the back of bargain-hunting on fundamentally sound tickers in sectors that had posted impressive real GDP growth like Cement, Telecommunications, Financial Institution and Food Beverage and Tobacco.
This is evidenced in WoW price accretion in stocks like DANGCEM (+6.1%), BUACEMENT (+4.8%), AIRTELAFRI (+7.0%), INTERBREW (+2.6%), and select Banking stocks, securing a close in the green zone for the broader market. Going-forward, the depressed yield environment in the fixed income space and buoyant liquidity backdrop will continue to act as push factors toward equities.
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