Market Sentiment Improves as Equities Open Week Flat

The NSE ASI commenced the trading week flattish, advancing 2 bps to settle at 42,579.48 points while YTD return closed the day flat at 11.3%. Consequent on this, investors' wealth rose N3.1bn as market capitalization increased to N15.3tn. Today’s market performance was largely driven by price appreciation in INTBREW (+5.0%), GUARANTY (+1.5%) and ZENITH (+0.8%) which offset losses in DANGCEM (-0.4%), UBA (-3.5%) and SEPLAT (-2.0%). Activity level was however mixed as volume traded appreciated 24.8% to 384.9m units on the back of trades in CCNN (134.8m), TRANSCORP (33.9m) and FIDELITY (16.3m). Whereas, value traded declined 14.5% to N5.5bn with CCNN (N2.3bn), DANGCEM (N0.55bn) and NIGERIAN BREWERIES (N0.35bn) leading as top traded stocks by value.

Mixed Sector Performance
Sector Performance was mixed as 3 indices under our coverage advanced while 2 declined. The Consumer Goods index led gainers, up 0.8% following a rally in INTBREW (+5.0%) and PZ (+5.0%). In the same vein, the Insurance and Banking indices appreciated 0.5% and 0.3% respectively as investors took positions in WAPIC (+2.9%), AIICO (+2.7%), GUARANTY (+1.5) and ZENITH (+0.8%). On the flipside, the Oil & Gas index shed 2.5% primarily due to losses in SEPLAT (-2.0%) and TOTAL (-4.8%). Likewise, sell offs in DANGCEM (-0.4%) pulled the Industrial Goods index 0.2% lower.

Market Breadth Improves
Market breadth (advance/decline ratio) which measures investor sentiment improved but stayed negative at 0.8x as 21 stocks advanced against 26 stocks that declined. This shows sentiment is improving although still weak. The top gainers today were JAPAUL OIL (+9.5), UNITY (+9.4%) and NASCON (+5.1%) whereas COURTVILLE (-6.3%), CAVERTON (-5.0%) and MOBIL (-5.0%) led laggards. In the near term, we (Afrinvest) expect market performance to be largely driven by FY:2017 result expectation.