Equities Market Review and Outlook

Performance for the last week of the month of September was mixed as the local bourse gained on 3 of 5 days. Despite this, the All Share Index (ASI) marginally lost 0.1% W-o-W to close at 35,439.38 points while YTD return moderated to 31.9%. Investors lost N16.8bn as market capitalization settled at N12.2tn. The drag in performance was largely on account of declines in Consumer Good counters – NIGERIAN BREWERIES (-3.5%), GUINNESS (-4.3%) and NESTLE (-0.8%). However, activity level was mixed as average volume rose 20.9% to 265.2m units while value traded fell 21.1% to N2.8bn.

Sector performance was mixed as the Consumer Goods index shed 1.9% W-o-W following selloffs in NIGERIAN BREWERIES (-3.5%), GUINNESS (-4.3%) and NESTLE (-0.8%). The Industrial Goods index trailed with a 1.2% loss on the back of declines in WAPCO (-1.6%) and CCNN (-5.0%). On the flipside, the Banking index was spurred by bargain hunting in ZENITH (+6.1%) and GUARANTY (+1.0%) which drove the index 1.2% northwards. Likewise, the Insurance and Oil & Gas indices closed 0.6% and 0.5% higher respectively as MANSARD (+5.3%) and TOTAL (+2.7%) recorded gains.

Despite the negative close, investor sentiment improved as market breadth settled at 1.1x (from 0.5x recorded last Friday) consequent on 34 stocks advancing against 30 declining stocks.  This week’s top gainers were CILEASING (+34.7%), FIDSON (+17.3%) and UNITY (+15.4%) while the top losers were AGLEVENT (-16.9%), MORISON (-12.0%) and UAC-PROP (-9.3%). In the coming week, we believe market performance will be majorly driven by investors' expectation of Q3:2017 report card. Nonetheless, we advise investors to stay bullish on stocks with sound fundamentals.