Bulls Sneak into the Market

Photo L-R: Oscar Onyema, CEO, NSE; Dr. Enase Okonedo, Dean, Lagos Business School; Kayode Falowo, GMD, Greenwich Trust Limited; Dr Franklin Ngwu, Academic Director, Lagos Business School; and Genevieve Johnson at the  Closing Gong Ceremony at the Exchange.

The Nigerian equity market halted the bearish trend today as bargain hunters’ cherry picked large caps stocks. The benchmark index rose 0.5% to close at 27,421.83 points while market capitalization appreciated N51.4bn to settle at N9.4tn. Today’s positive close was predicated on renewed interest in market bellwethers such as NIGERIAN BREWERIES (+2.0%), DANGCEM (+0.6%), GUARANTY (+1.2%) and NESTLE (+0.6%). Activity level was mixed as volume traded dipped 6.1% while value traded surged 57.1% to close at 391.3m units and N3.4bn. The surge in value traded was as a result of investors taking position in GUARANTY which commanded 58.8% of total market value.
Banking and Consumer Goods Indices Lead Sector Performances
Contrary to the last two trading sessions of the week when all sector indices closed in the red, today’s performance by sector was mixed. The Banking and Consumer Goods indices rose 0.8% and 0.7% respectively as investors hunted for bargain in GUARANTY (+1.2%), ETI (+1.7%), ACCESS (+1.8%), NIGERIAN BREWERIES (+2.0%) and NESTLE (+0.6%). The Oil & Gas index (+0.2%) also appreciated marginally as TOTAL gained 1.7%. On the flip side, DANGCEM’s 0.6% uptrend was unable to offset a 4bps decline in the Industrial Goods index whilst AIICO (-2.9%) and NEM (-2.4%) dragged the Insurance index 0.1% lower.
Improved Market Breadth
Investor sentiment improved today albeit soft as market breadth (advancers/decliners ratio) closed at 0.5x (from 0.2x yesterday) owing to 14 advancers against 30 decliners. The best performing stocks were IKEJAHOTEL (+5.0%), UAC-PROP (+4.8%) and INTBREW (+4.6%) while 7-UP (-9.7%), CAP (-9.7%) and FIDSON (-4.8%) led losers. As noted yesterday, sustained sell pressure in the bourse triggered bargain hunting today, however we expect the market to trade soft tomorrow barring any earnings surprises from the Tier-1 banks.