Equities Open Week Lower Despite Positive Outlook

The Equities market opened the week on a negative note as the benchmark index contracted 0.4% to close at 35,361.52 points while the YTD gain retreated to 31.6%. Resultantly, investors lost N44.8bn as market capitalization settled at N12.2tn. The drag in today’s performance was majorly on account of losses recorded in NIGERIAN BREWERIES (-1.8%), UBA (-3.0%) and WAPCO (-2.9%). Similarly, activity level waned as volume and value traded plunged 44.3% and 62.8% to 107.1m units and N1.4bn respectively.  

Industrial Goods Index Leads Sector Decliners
The Industrial Goods index led sector decliners with a 1.1% decrease owing to profit taking in WAPCO (-2.9%). The Consumer Goods index trailed with a loss of 0.8% as a result of declines in NIGERIAN BREWERIES (-1.8%) and NESTLE (-0.4%) while the Banking index fell 0.5% due to price deprecation in UBA (-3.0%) and GUARANTY (-0.3%). Contrarily, an uptick in TOTAL (+2.7%) buoyed the Oil & Gas index 0.3% northward while the Insurance index marginally climbed 0.1% on the back of gains in MANSARD (+0.5%).  

Investor Sentiment Stays Positive
Market breadth, a measure of investor sentiment, retreated to 1.2x from 1.5x recorded on Friday after 19 stocks advanced against 16 decliners. The top performers were FIDSON (+5.0%), AIRSERVICE (+5.0%) and CUSTODYINS (+4.9%) while the worst performers were SKYEBANK (-3.6%), NEIMETH (-3.2%) and UBA (-3.0%). Despite the profit-taking which dragged the market, we expect performance to turn positive before the end of the week as investors take position ahead of Q3:2017 company scorecards releases.