Equities Rebound from 4-day Losing Streak

The Nigerian bourse rebounded from a 4-day losing streak as the All Share Index (ASI) rose 0.2% to close at 32,354.78 points while market capitalization added N18.1bn to settle at N11.2tn. Consequently, YTD gain of the benchmark index improved to 20.4%. Today’s positive performance was largely driven by DANGCEM (+1.9%); ex- Dangcem, ASI would have lost 0.2%. Activity level however was mixed as volume traded fell 45.9% to 168.5m units while value traded rose 21.9% to N3.6bn.

Positive Performance across Sectors
Sector performance was largely positive as the Consumer Goods index was the sole loser, down 1.1%  as a result of sell-offs in FLOURMILL (-4.9%) and HONYFLOUR (-4.8%). The Oil & Gas index led gainers with a 1.2% return due to bargain hunting in OANDO (+5.0%) and SEPLAT (+1.2%)  while the Insurance index (+0.9) followed as a result of gains in MANSARD (+4.9%). Likewise, the Banking and Industrial Goods indices rebounded 0.5% apiece on account of bargain hunting in ZENITH (+0.9%), UBA (+1.4%), ACCESS (+1.1%) and DANGCEM (+1.9%).

Investor Sentiment Improves
Investor sentiment improved as market breadth rose to 0.9x (from 0.4x yesterday) after 20 stocks advanced against 23 decliners. OANDO (+5.0%), MANSARD (+4.9%) and 7UP (+4.8%) led the gainers chart while MAYBAKER (-9.4%), UACN (-5.0%) and FIDSON (-4.9%) led the laggards. While today’s performance is largely attributable to an uptick in DANGCEM, we envisage that as the H1:2017 earnings season approaches, early-bird investors will likely start taking positions ahead of release of corporate scorecards.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, four counters traded with total volume and value of transactions closing at 404,972 thousand units and N17.3m respectively. AFRILAND (+9.8%), CSCS (+9.4%) and NASD (+9.7%) closed in the green while WAMCO (-4.7%) closed in the red.