Equities Market Gets off to a Good Start, NSE ASI Up 0.5%

The Nigerian Bourse ended today’s trading session in the green to start the week on a positive note. The All Share index rose 0.5% to close at 25,828.30 points whilst market capitalization also rose N43.6bn to N8.9tn. Today’s performance was broadly buoyed by the appreciation in ZENITH (+4.6%), GUARANTY (+3.0%), NIGERIAN BREWERIES (+1.4%) and UNILEVER (+10.2%) which offset the impact of the decline in NESTLE (-2.6%), UNION (-4.9%) and STANBIC (-2.4%). Market activity also moved in tandem with the ASI as volume and value traded improved 74.9% and 45.4% to close at 315.7m units and N1.7bn respectively.
 
Banking Index leads sector gainers
On the back of continuous gains in ZENITH (+4.6%) and GUARANTY (+3.0%), the Banking index rose 2.1% to end today’s trading session as the top gaining index. Consequent on the 1.4% and 10.2% appreciation in NIGERIAN BREWERIES and UNILEVER, the Consumer Goods index also moved 0.6% northwards. On the other hand, the Insurance index declined 1.0% as a result of the 4.7% and 2.5% losses sustained in MANSARD and NEM whilst the 3.2% decline in TOTAL and a late rout in FORTE OIL (-0.3%) dragged the Oil & Gas index 0.4% lower. The Industrial index fell 6bps.
 
Strong Appetite across Board Leads to Surge in Market Breadth
Investor sentiment remained bullish today as market breadth (advancers’/decliners’ ratio) closed at 1.6x as a result of 29 advancing stocks against 18 decliners. UNILEVER (+10.2%), ETERNA (+7.4%) and UCAP (+6.7%) topped the gainers’ list while GLAXOSMITH (-5.0%), CADBURY (-5.0%) and BERGER (-4.9%) led losers. With the end of earnings season in sight, the strong bullish sentiment in the market today could be attributable to investors’ excitement over the eventual “kick-off” of the 2016 fiscal year. Nonetheless, we expect the positive momentum to moderate in subsequent trading sessions as short-term investors start to book profit.
 

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