Large Cap Stocks Drives the Equity Market Higher
At the close of trading activities on Friday, the benchmark index closed in the positive driven largely by price appreciation in large cap stocks such as Nigerian Breweries (10.0%) and Zenith Bank (2.3%).
As a result, the All Share Index advanced by 1.0% to settle at 32,327.59 points even as the Market Breadth closed at 1.31x with 21 gainers and 16 losers. Furthermore, the volume and value of deals increased by 44.8% and 27.5% respectively.
The sector performance revealed that two out of the five sector Indices closed in the negative. The NSE Industrial Goods Index lost the most declining by 0.5% due to sell-off in Cement Company of Northern Nigeria (-10.0%). Following was the NSE Insurance Index moderating marginally by 0.1% as a result of the losses in Linkage Assurance (-9.2%), Universal Insurance (-7.4%) and Veritas Kapital (-7.1%).
On the other hand, the NSE Banking Index notched by 2.8% on the back of price appreciation in Unity Bank (9.4%), Diamond Bank (8.4%) and Zenith Bank (2.3%). In addition, the NSE Consumer Goods Index advanced by 0.6% majorly due to gains in Nigerian Breweries (10.0%) and Honey Flour (9.5%), while the NSE Oil and Gas Index closed flat.
The most actively traded stock in terms of volume was Guaranty Trust Bank with 68.7million units of shares worth c.2.3Trillion.
The gainers chart was led by Nigerian Breweries notching by 10.0% to close at ₦92.50 from ₦84.10 while Cement Company of Northern Nigeria was the biggest loser declining by 10.0% to close at ₦25.10 from ₦22.60.
We maintain a negative outlook at the next trading session. However, we highlight the possibility that bargain hunters will take advantage of the lower prices to buy into the dip in the coming week.