Nigerian Bourse Starts Week Bearish

The Nigerian Equities market started the week on a negative note as it ended the first trading session of the week in the red zone. The All Share Index shed 1.4% to close at 25,545.10 points whilst market capitalization also declined N214.2bn to settle at N8.7tn. Today’s market performance was broadly driven by the depreciation in bellwether stocks across sectors – ZENITH (-1.2%), GUARANTY (-0.3%), NIGERIAN BREWERIES (-5.0%), and DANGCEM (-1.2%). Market activity trended similar to the ASI as volume and value traded declined 28.8% and 59.2% to close at 282.7m units and N1.3bn respectively.
Oil & Gas index lone Gainer
At the end of the first trading session for this week, all indices closed in the red zone save for the Oil & Gas index which increased 0.3% on the back of appreciation in TOTAL (+4.6%) and ETERNA (+4.5%) a piece. Price depreciation in DANGCEM (-1.2%), CCNN (-5.0%) and profit taking in NIGERIAN BREWERIES (-5.0%) and UNILEVER (-4.6%) dragged the Industrial and Consumer Goods indices southwards 2.5% and 2.0%respectively. CCNN in its full year 2015 results released earlier today, showed that revenue was down 13.8% to N13.0bn whilst PAT also declined 37.4% to N1.2bn. Similarly, the Banking index also shed 0.8% as a result of profit-taking in ZENITH (-1.2%) and GUARANTY (-0.3%). The Insurance index shed 0.8% on the back of selloffs in MANSARD (-4.1%) and AFRIPRUD (-4.8%)
Negative Market Breadth
Similar to most trading days of last week, investors’ sentiment remains weak as market breadth (advancers’/decliners’ ratio) closed at 0.4x on the back of 11 advancing stocks against 27 declining stocks. At the top of the gainers list were DANGSUGAR, PZ (5.0% a piece) and UBA (4.8%) while NIG-GERMAN (-9.6%) DIAMOND (-9.2%) and SKYE (-7.1%). Market sentiment of recent has been majorly driven by earnings releases but as the reporting season draws to a close, we expect that Macro fundamentals will be anchoring sentiment.