Benchmark Index Tilts Positive on Energy Stocks

Nigerian equities rebounded from a 3-day losing streak as the All Share Index added 18bps to close on Thursday at 26,464.82 points. Also, market capitalization expanded N16.1bn to settle at N9.1tn and YTD loss eased to 7.6%. Today’s performance was mainly driven by a renewed interest in Oil & Gas counters such as FORTE (+10.2%), CONOIL (+10.2%), and OANDO (+4.3%) which had been significantly beaten by profit takers in the last three sessions. On the contrary, market activity declined as volume and value traded fell by 55.2% and 86.2% to settle at 188.7m units and N1.4bn respectively.

Mixed Sector Performance
Performance across sectors was mixed as 2 sectors advanced while 3 declined. The Oil & Gas index bucked the negative trend, recouping 2.5% as investor took positions in FORTE (+10.2%) and CONOIL (+10.2%). The Industrial Goods (+0.2%) index followed suit on account of gains in BETAGLASS (+10.2) and CCNN (+4.8%). Contrarily the Banking and Insurance indices lost 0.1% apiece due to declines in UBA (-1.1%), GUARANTY (-0.6%), WAPIC (-3.8%) and AIICO (-1.6%) while losses in HONYFLOUR (-4.7%) and INTBREW (-3.8%) ensured the Consumer goods index closed the day 3bps lower.

Investor Sentiment Improves
Investor sentiment improved today as market breadth stood at 1.4x from 1.3x yesterday after 18 stocks advanced against 13 declining stocks. The best performing stocks today were FORTE (+10.2%), BETAGLAS (+10.2%) and CONOIL (+10.2%) while PRESCO (-4.7%), HONYFLOUR (-4.7%) and WAPIC (-3.8%) were the worst performers. Today’s performance is unsurprising given the negative trend that persisted since the start of the week. We foresee a similar trend tomorrow as portfolio investors begin mop up trades to balance their books for the year.