Nigerian Bourse Continues Southward Movement

The All Share Index declined 4bps to close at 24,639.48 points at the end of today’s trading session as the Nigerian Equities market continued southwards albeit marginally.  Market capitalization also further tapered N3.2bn to settle at N8.5tn. The National Bureau of Statistics released March inflation figures earlier today, with headline inflation at a disturbing 12.8%, from 11.4% in February. With the market already reacting to MSCI’s statement on the possible removal of Nigeria from its frontier market index, the release of March inflation figures further dampened sentiments as sell pressure continued during today’s trading session. Market performance was dictated by further depreciation in DANGCEM (-0.6%), UBN (-4.9%) and ETI (-1.2%). However, activity level strengthened as volume and value traded increased 28.7% and 54.4% to close at 290.0m and N1.2bn respectively.
DANGCEM Drags Industrial Index Lower
Sector performances was mixed today as bargain hunting in ZENITH (+3.8%), GUARANTY (+1.5%), FBNH (+2.7%) and price appreciation in MANSARD (+2.6%) and CONTINSURE (+1.0%) pushed the Banking and Insurance indices northwards 0.8% and 0.4%. The Oil & Gas index also appreciated 0.4% on the back of further appreciation in OANDO (+4.9%). On the other hand, the Consumer Goods index pared 0.2%, due to 5.3%, 1.9% and 4.9% decline in FLOURMILLS, DANGSUGAR and TIGERBRAND. The Industrial Goods index also depreciated 0.3% as DANGCEM (-0.6%) closed lower.
Market Volatility May Persist
Market breadth (advancers/decliners ratio) closed positive at 1.1x as a result 19 advancing stocks against 18 declining stocks. Leading the gainers were ETRANZACT (+9.9%), OANDO (+4.9%) and PORTPAINT (+4.7%), on the flip side, FIDSON (-9.4%), FLOURMILL (-5.3%) and UBN (-4.9%) led the laggards. With current macroeconomic realities dampening investor’s sentiments, we expect market volatility to persist.