Equities Market Recovers from Downswing

Photo L-R: Haruna Jalo-Waziri, Executive Director, Capital Markets Division, The Nigerian Stock Exchange (NSE); Hayford Alile, Pioneer Director-General, NSE; Oscar Onyema, CEO, NSE; Abimbola Ogunbanjo, First Vice President, NSE; and Ayo Gbeleyi, Managing Partner of GA Capital Limited, representative of the Honourable Minister of Power, Works and Housing at the NSE Real Estate Investment Trust Conference today at the Exchange.

The National Bureau of Statistics (NBS) released its Q1:2017 GDP report today, which recorded a contraction of 0.5% Y-o-Y. Also, much in line with our expectation, the Monetary Policy Committee of CBN maintained status quo on all rates at its just concluded meeting today. Nevertheless, following improved market sentiment that has been witnessed on the bourse, the Nigerian equities market recovered from yesterday’s negative close as the benchmark index inched 0.3% higher to settle at 28,153.45 points. Today’s performance was buoyed by price appreciation in NIGERIAN BREWRIES (+2.2%), NESTLE (+1.7%), ETI (+3.3%) and GUARANTY (+0.4%) which offset the losses in DANGCEM (-0.6%) and WAPCO (-2.2%). Accordingly, investors recouped N25.9bn as market capitalization rose to N9.7tn. However, activity level weakened as volume and value traded fell 0.5% and 45.2% to 207.2m units and N2.1bn respectively.

Mixed performance across sectors
Performance across sectors remained mixed as 3 of 5 indices declined. The Consumer Goods index gained the most, up 1.4% on the back of advances in NIGERIAN BREWRIES (+2.2%), NESTLE (+1.7%) and PZ (+0.5%) while appreciations in MANSARD (+4.4%) and NEM (+4.1%) boosted the Insurance index to close 1.2% higher. Contrarily, the Oil & Gas index fell 0.7% due to depreciations in TOTAL (-3.7%) and OANDO (-1.1%). Similarly, the Industrial and Banking indices fell 0.3% and 0.1% respectively due to losses in DANGCEM (-0.6%) and UBA (-3.2%).

Investor Sentiment Wanes
Investor sentiment weakened today, as indicated by market breadth (advancers/decliners ratio) which settled at 1.2x (from 1.7x yesterday) - 23 stocks advanced against 18 that declined. The best performing stocks were UACPROP (+9.4%), FIDSON (+8.9%) and VITAFOAM (+5.0%), while the worst performing stocks were DANGFLOUR (-4.8%), LEARNAFRICA (-4.7%) and CCNN (-4.6%). We reiterate that the upticks that have been witnessed in the market have been largely driven by improvements in the FX markets as well as macroeconomic fundamentals; consequently, we expect this positive run to be sustained in the trading sessions ahead.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, total volume and value traded closed at 3.6m units and N41.1m respectively. Only five counters traded today- CSCS, CAPDBETO, NDEP, WAMCO and DIGI. CSCS accounted for 92.9% of total volume traded.