Equity Market: NSEASI approaches 40,000pts

FX Liberalization debt Naira Further Depreciates against the USD at the BDC, Parallel Markets Market reacts to monetary policy action
Afolabi Sotunde Illustration Naira

The equity market continued northwards as the ASI inched up by 1.03% to 39,512.31pts at the end of yesterday’s trading session. Hence, YTD return and Market capitalisation settled at 47.2% and N20.7trn respectively.

However, activity level was mixed as the volume of transactions plunged 48.4%, while the value of transactions gained 162.6% to close at 372.9Mn units and N11.5bn respectively.

The sectorial performance was broadly bullish as three of five sectors under our watch closed green. The industrial goods (+3.74%) led the gainers’ campaign, fueled by price appreciation in BUACEMENT (+10.0%).

Also, the Insurance (+3.0%) and Consumer Goods (+0.4%) sectors were up, thanks to LINKASSURE (+8.3%), NEM (+9.4%), and INTBREW (+10.0%). Contrarily, the Banking (-0.7% and Oil & Gas (-0.4%) sectors were down, dragged by price declines in ACCESS (-2.3%), GUARANTY (-0.6%), and OANDO (-3.3%).

Market sentiment, measured by market breadth which strengthened to 1.3x — 24 gainers vs. 19 laggards —improved. As trading opens for the last day of the year, we expect DANGCEM’s share buyback program to be the highlight of market activities. Again, we anticipate the final trading session of the year to close on a positive note.