Market Opens Week Positive

The Nigerian Bourse opened this week in the green as the All Share Index (ASI) rose 0.3% to 36,971.27 points, pushing YTD return to 37.6%. In line with the performance, market capitalization increased by N42.4bn to close at N12.7tn while activity level improved as volume and value traded expanded 34.7% and 21.8% to 215.0m units and N2.7bn respectively. Today’s uptick can largely be attributed to ZENITH (+3.1%), DANGCEM (+0.2%) and GUARANTY (+0.2%).

Banking Sector Leads the Way
Likewise, most sector indices expanded relative to Friday’s values with the Banking index (+1.0%) at the forefront, owing to gains in ZENITH (+3.1%) and ETI (+1.3%). Relatedly, UBA released its 9M:2017 result today. Gross earnings improved 25.8% Y-o-Y to N333.9bn from N265.5bn while PAT rose 23.0% Y-o-Y to N60.9bn from N49.5bn. The Insurance index recorded a modest gain of 0.2% as MANSARD and AIICO appreciated 3.6% and 3.7% respectively. The Oil & Gas index however closed flat while today’s sole loser was the Consumer Goods index which declined 0.3% primarily due to a loss in NIGERIAN BREWERIES (-1.2%).

Earnings Results Drive Sentiment
Investor sentiment while positive, was down from Friday as market breadth declined from 2.3x to 1.8x at market close. The day’s top performers were CILEASING (+9.6%), FIDELITYBK (+5.0%) and NAHCO (5.0%) against the top losers - LEARNAFRCA (-5.0%), VITAFOAM (-4.3%) and CONTINSURE (-4.2%). We expect the positive performance to be sustained in subsequent sessions as Q3:2017 earnings results are released.