Photo L-R: Tony Ibeziako, Ag. Head, Listings Business Division, The Nigerian Stock Exchange (NSE); Bola Adeeko, Head, Shared Services Division, NSE; Oscar Onyema, Chief Executive Officer, NSE; Tinuade Awe, Executive Director, Regulation, NSE and Ade Ewuosho, Ag. Head, Trading Business Division, NSE during the presentation of 2017 Market Recap & Outlook for 2018 at the Exchange.
Following a 3-day rally, the equities market shed gains at the close of trade today as the All Share Index (ASI) closed 8bps lower to settle at 44,848.74 points. Consequently, YTD return contracted to 17.3% while investors lost N13.1bn as market capitalization closed at N16.1tn. Today’s performance was dragged by profit taking in NIGERIAN BREWERIES (-2.8%), UBA (-2.7%) and UBN (-4.8%). However, activity level was mixed as volume traded advanced 40.0% to 1.3bn units while value traded declined 14.3% to N10.7bn.
Mixed Sector Performance
Performance across sectors was mixed as 3 of 5 indices closed southwards. The Industrial Goods index was the biggest loser, down 1.2 % primarily due to sell offs in WAPCO (-3.7%). The Consumer Goods index trailed, depreciating 1.1% as investors booked profit in NIGERIAN BREWERIES (-2.8%), UNILEVER (-4.3%) and DANGSUGAR (-1.2%). Similarly, losses in FORTE (-0.4%) pulled the Oil & Gas index 0.1% lower. On the flip side, buy interest in MANSARD (+5.0%), NEM (+3.5%) and AIICO (+4.8%) buoyed the Insurance index 2.0% higher while gains in GUARANTY (+2.0%) and ACCESS (+1.6%) drove the positive performance of the Banking Index (+0.3%).
Investor Sentiment Softens
Investor sentiment measured by market breadth (advance/decline ratio) softened to 0.9x from 2.1x recorded the previous day consequent on 28 stocks advancing relative to 31 stocks that declined. The best performing stocks were CCNN (+10.2%), FCMB (+10.1%) and CAVERTON (+9.8%) while the worst performers were FIDSON (-9.2%), NASCON (-7.2%) and GLAXOSMITH (-5.0%). As expected, investors booked profit on previous advancers, notwithstanding; we expect the market to close the week positive.