Equities Market Creeps into the Green

Performance of the Nigerian Equities market turned positive today even as the overall short term outlook of the market remains bleak. Consequently, the benchmark index –All Share Index- marginally rose 0.1% to close at 24, 659.17points. Price appreciation in ETI (+5.0%), GUARANTY (+2.3%) and ZENITH (+2.0%) lifted the market into the green. Similarly, investors gained N2.8bn as market capitalisation rose to N8.5tn. However, activity level strengthened today as volume and value traded were up 76.2% and 147.3% to 228.4m units and N1.4bn respectively.
UBA Plc Releases Q1:2016 Result
Performance across sectors was mixed today. The Banking Index advanced the most, gaining 2.0% following gains in ETI (+5.0%) and GUARANTY (+2.3%). In a related development, UBA Plc released its Q1:2016 result today; Gross Earnings declined 10.8% to N74.1bn while PAT marginally grew 0.2% to N17.0bn for the period as the counter appreciated 3.1% at the close of trading today. The Insurance Index also gained 1.0%. In contrast, the Oil & Gas index lost the most, down 1.3% against the backdrop of losses in OANDO (-1.9%), followed by the Consumer Goods index (-0.9%). The Industrial Goods index closed marginally down 4bps.
Sentiments turn Positive
Sentiments turned positive today as market breadth (advancers/decliners ratio) rose to 1.4x (from 0.6x yesterday) on account of 22 stocks that advanced while 16 declined. The biggest gaining stocks today were ETI (+5.0%), ETERNA (+4.9%) and TIGERBRANDS (+4.8%) while UACN (-5.0%), INTERLINK (-5.0%) and DIAMOND BANK (-5.0%) were the worst performing stocks. As more Q1:2016 results filter in, market performance remains driven by earnings releases. The results released so far have been in line with analysts’ expectation save for Unilever which posted a positive earnings surprise. Sentiments remain strong at the moment and we expect the momentum to be sustained in the sessions ahead. Weak macroeconomic indicators and possibility of the exclusion of Nigeria from the MSCI Frontier index remain key risks to the downside.