Stock Market Closes Tepid

Photo L-R: Haruna Jalo-Waziri, Executive Director, Capital Markets Division, The Nigerian Stock Exchange (NSE); Oluwafemi Onifade, Head, International Primary Markets, NSE; Oscar Onyema, CEO NSE; Onne Van Der Weijde, Group CEO, Dangote Cement; Ibukun Adebayo, Co-Head Emerging Markets, International Markets Unit, London Stock Exchange Group; Andrew Balfour, Chairman, Africa Practice Group, Slaughter & May; Asue Ighodalo, Partner, Banwo & Ighodalo; Ayo Fashina, Director, Chapel Hill Denham; Brian Egan, CFO, Dangote Cement; and Darrell McGraw, Partner, PWC at the 2nd NSE/LSE Dual Listings Conference Closing Gong Ceremony today in Lagos.

The Nigerian equities market continued tepid today as the All Share Index (ASI) depreciated 1bp to close at 24,637.91 points whilst market capitalization also decreased N541.2m, settling at N8.5tn. Today’s marginal decline was broadly dictated by the depreciation in NESTLE (-4.4%), ACCESS (-3.9%), MOBIL (-7.4%) and UBN (-5.0%) which was almost offset by gains in GUARANTY (+4.4%), ZENITH (+0.9%) and NIGERIAN BREWERIES (+1.9%). Activity level also weakened with volume and value traded closing downbeat. Volume and value traded declined 44.1% and 11.6% to close at 161.9m units and N1.0bn respectively.
Banking Index Gives Respite
The Banking index appreciated 0.9% to end today’s trading session as the lone advancing index. This was buoyed by further bargain hunting in GUARANTY (+4.4%) and ZENITH (+0.9%). The Consumer and Industrial goods indices declined 0.5% and 0.1% respectively on the back of depreciation in NESTLE (-4.4%) and CUTIX (-4.9%). The Insurance index also trended southwards with a 0.7% decline as MANSARD, NEM and AIICO all depreciated -2.5%, -5.0% and -4.0% in that order. Price depreciation in MOBIL (-7.4%) and ETERNA (-4.5%) dragged the Oil and Gas index 0.2%lower.
Oil & Gas Stocks Lead Top Gainers/Losers
Market sentiments waned today as market breadth (advancers’/decliners’ ratio) closed at 0.8x (from 1.1x yesterday) on the back of 16 advancing stocks against 20 declining stocks. With a 6.1%, 4.7% and 4.4% price change, OANDO , FCMB and AFRIPRUD topped the gainers’ list while MOBIL, UAC-PROP and NEM led the worst performing stocks with -7.4%, -5.0% and -5.0% price change. We expect the tepid market movement to continue tomorrow amid worsening macroeconomic fundamentals and poor policy reactions.