Gains in Bellwethers Buoy Market Performance

Photo L-R: Bola Adeeko, Head, Shared Services Division, The Nigerian Stock Exchange (NSE); Simidele Adeagbo, Olympian and Skeleton Athlete; Oscar Onyema, Chief Executive Officer, NSE; Seun Adigun, the Olympia and Captain of Bobsled and Skeleton Federation; Tinuade Awe, Executive Director, Regulation, NSE and Ade Ewuosho, Ag. Head, Trading Business Division, NSE during the Closing Gong Ceremony at the Exchange today in commemoration of first African and Nigerian Bobsled team and a Skeleton Athlete who participated at the winter Olympics in South Korea.


The local bourse began the week on a positive note as the NSE All Share Index gained 1.5% to settle at 43,513.93 points while YTD return expanded to 13.8%. Accordingly, investors gained N229.1bn in value as market capitalization stood at N15.6tn. Today’s positive performance was largely driven by upticks in DANGCEM (+3.8%), SEPLAT (+8.6%) and GUARANTY (+1.8%). On the flip side, activity level softened as volume and value traded fell 37.5% and 37.1% to 252.0m units and N5.7bn respectively.

Bullish Sector Performance
Performance across sectors was broadly positive as all indices under our coverage trended northwards.  The Oil & Gas index was the top gainer, up 4.8% following buying interest in SEPLAT (+8.6%) and TOTAL (+4.7%). The uptick in SEPLAT could be attributable to positive investor sentiment to the company’s impressive FY:2017 earnings report as well as its recent “B2 with Stable Outlook” credit rating by Moody’s Rating Agency. The Industrial Goods index trailed, closing 2.2% higher due to price appreciation in DANGCEM (+3.8%) and WAPCO (+0.4%) while the Insurance index gained 0.8% buoyed by gains in CONTINSURE (+4.9%) and NEM (+4.9%).  In the same vein, the Banking and Consumer Goods indices rose 0.4% and 2bps higher as GUARANTY (+1.8%), ACCESS (+1.1%), FIDELITY (+5.0%), UNILEVER (+5.0%) and HONYFLOUR (+1.9%) all closed in the green.

Investor Sentiment turns Positive
Investor sentiment as measured by market breadth (advance/decline ratio) improved to 1.3x from 0.9x recorded the previous session as 32 stocks advanced against 25 decliners. The top performing stocks were CAVERTON (+10.0%), JAPAULOIL (+9.5%) and FIRSTALU (+8.9%) while REGALINS (-8.3%), LEARNAFRICA (-4.9%) and UNIC (-4.6%) were the worst performers. Following improved investor sentiment, we expect performance in subsequent sessions to remain largely positive though we anticipate market movement to be determined by investor reaction to companies earnings results.