Nigerian Bourse Off to a Good Start

The equities market sustained last week’s positive close, with the All Share Index rising 0.3% to 37,525.38 points at the end of trade today. Thus, Year-to-date performance was further buoyed to 39.6%. Similarly, investors gained N34.5bn as market capitalization settled at N12.9tn. Today’s positive performance was due to appreciation in Consumer and Industrial Goods large-caps including NIGERIAN BREWERIES (+3.1%), NESTLE (+3.3%) and WAPCO (+1.7%). Activity level however declined as volume and value traded slid 50.6% and 8.0% to 254.5m units and N5.8bn respectively.

Mixed Performance across Sectors
Performance across sectors was mixed as 2 of 5 indices trended northwards. The Consumer Goods index led sector gainers with a 2.2% appreciation, consequent on gains in NESTLE (+3.3%) and NIGERIAN BREWERIES (+3.1%). The Industrial Goods index trailed, climbing 0.6% higher due to an uptick in WAPCO (+1.7%). On the flip side, losses in MANSARD (-4.6%) and CONTINSURE (-4.3%) dragged the Insurance index 2.0% lower, whilst the Banking and Oil & Gas indices dipped 0.2% apiece on account of losses in ZENITH (-0.4%), UBA (-1.3%), OANDO (-1.9%) and FORTE (-1.4%).

Investor Sentiment Wanes
Investor sentiment waned as market breadth (advancers/decliners’ ratio) retreated to 0.8x against 3.3x recorded last week Friday. The best performing stocks today were CCNN (+10.2%), CILEASING (+10.0%) and DANGFLOUR (+7.6%) while the worst performers were MANSARD (-4.6%), CONTINSURE (-4.3%), and AGLEVENT (-4.2%). In coming sessions, we expect market performance to remain driven by expectations of H1:2017 corporate earnings. As more Tier-1 banks are set to release their H1:2017 earnings in coming weeks, we believe market performance will remain upbeat.