Market Closes Flat amid Mixed Sector Performance

Photo L-R: Mrs. Favour Femi-Oyewole, Chief Information Security, The Nigerian Stock Exchange (NSE); Mr. Oscar Onyema, Chief Executive Officer, NSE; His Excellency, Mr. Robert Petri , Netherlands Ambassador to Nigeria; Mrs. Marijke Petri – His wife; Mr. Michel Deelen, Deputy Ambassador/Head of Lagos Representation Office, The Embassy of the Kingdom of the Netherlands, Lagos Office; and Ms. Sonia Fajusigbe,  Adviser Economic, Trade & investment Affairs, The Embassy of the Kingdom of the Netherlands, Lagos Office during a Closing Gong Ceremony at the Exchange in Lagos.

The Local Bourse extended gains from the previous session as the All Share Index (ASI) marginally rose 2bps to close at 42,158.32 points on Wednesday while YTD return stayed flat at 10.2%. Accordingly, investors gained N3.6bn as market capitalization closed at N15.1tn. Today’s positive performance was on the back of a rebound in banking stocks- GUARANTY (+1.6 %), ZENITH (+1.5%) and UBA (+3.3%). Similarly, activity level strengthened as volume and value traded rose 11.8% and 15.0% to 570.3m units and N5.3bn respectively.

Mixed Sector Performance
Sector performance today was mixed as 2 of 5 indices closed in the green, while 3 trended southwards. The Banking and Insurance indices advanced 1.1% and 0.7% respectively due to gains in GUARANTY (+1.6 %), ZENITH (+1.5%), CONTINSURE (+0.1%) and PRESTIGE (+0.02%). On the flipside, the Oil & Gas index declined the most, shedding 1.2% as investors sold off positions in CONOIL (-9.6%) and MOBIL (-4.5%). The Consumer and Industrial Goods indices trailed, down 0.9% apiece, dragged by price depreciation in NESTLE (-0.7%), NIGERIAN BREWERIES (-2.7%), WAPCO (-1.8%) and CCNN (-4.3%).

Investor Sentiment Improves
Investor sentiment measured by market breadth (advance/decline ratio) improved to 0.7x from 0.5x recorded yesterday as 27 stocks advanced against 30 decliners. The top performing stocks were JAPAUL OIL (+5.7%), CHAMPION (+4.8%) and CONTINSURE (+1.6%) while the worst performers were CONOIL (-9.6%), UNIC (-6.2%) and FIDELITY (-5.7%). Despite the marginal gain today, the improvement in sentiment shows the market is gradually stabilizing. Thus, we expect performance in subsequent trading sessions to remain positive.