Bulls Back in Town?

The All Share Index rose 0.1% to close at 25,679.03 points as the Nigerian bourse ended a 3-day losing streak. However, Ex-DANGCEM the market eased 0.2%, implying that sentiment remains bearish.  Market capitalization also increased N7.4bn to settle at N8.8tn. Similarly, market activity strengthened as volume and value traded increased 2.9% and 13.3% to close at 201.1m units and N1.7bn respectively. Today’s market performance was buoyed by the further appreciation in NIGERIAN BREWERIES (+4.1%) and a late rally in Industrial bellwether DANGCEM (+0.6%).
 
ACCESS Reports a 37.5% Y-O-Y Growth in Gross Earnings to N337.4bn
The Consumer and Industrial Goods indices inched 1.1% and 0.3% respectively on the back of further appreciation in NIGERIAN BREWERIES (+4.1%) and a late rally in Industrial bellwether DANGCEM (+0.6%). Further depreciation in FBNH (-4.6%), ETI (-2.9%) and ZENITH (-0.7%) dragged the Banking index (-1.3%). ACCESS reported a 37.5% Y-O-Y growth in Gross earnings to N337.4bn whist PAT also increased 53.3% to N65.8bn, the Bank also declared a final dividend of N0.30 in the full year 2015 released this afternoon. The Oil and Gas index also shed 0.4% as profit taking in OANDO continued (-4.8%) whist the Insurance index declined 0.3% facilitated by the 4.9% shed in AIICO.
 
Negative Market Breadth Sustained
Similar to the first three trading days of the week, the market sentiments remained negative today. Market breadth (advancers’/decliners’ ratio) closed at 0.4x on the back of 9 advancing stocks against 23 declining stocks. At the top of the gainers’ list were UNITY (+4.5%), FIDELITY (+4.2%) and NIGERIAN BREWERIES (+4.1%) while ACCESS (-8.2%) NASCON (-5.0%) and AIICO (-4.9%) depreciated the most. Sentiments seem to be at the dictate of weaker forward earnings as sell pressure was sustained on ACCESS (-8.2%), ZENITH (-0.7%), GUARANTY (-0.3%) and NESTLE (0.0%) despite impressive full year results submitted during the week. We expect performance to stay driven by corporate releases.

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