Equities Market Rebounds, Up 0.2%

Contrary to yesterday’s performance, the Nigerian Bourse ended today’s trading session in the green zone. The All Share Index grew 0.2% to close at 24,824.84 points whilst market capitalization also closed at N8.5tn as Investors gained N20.2bn. The upward movement in market heavy weights – ETI (+3.4%), ZENITH (+1.2%), NIGERIAN BREWERIES (+0.4%) and FBNH (+2.4%) – majorly facilitated today’s positive close. Market activity also strengthened as volume and value traded rose 46.7% and 96.3% to close at 212.1m units and N1.5bn respectively.
 
Industrial Index Lone Decliner
Performance across sectors was broadly positive today as all indices save for the Industrial index appreciated. The 2bps depreciation in the Industrial index was as a result of the 2bps and 0.8% decline in DANGCEM and ASHKACEM. The Insurance and Banking indices rose 1.1% and 0.9% on the back of price appreciation in MANSARD (+4.7%), ETI (+3.4%), ZENITH (+1.2%), and FBNH (+2.4%). This came despite the poor FY:2015 and Q1:2016 results submitted by FBN Holdings Plc’s earlier today, with PAT down 82.0% Y-o-Y (to N15.1bn in FY:2015) and 8.3% Y-o-Y (to N20.7bn in Q1:2016) respectively. The Consumer Goods index also rose 0.2%, buoyed by 0.4%, 2.6% and 5.2% improvement in NIGERIAN BREWERIES, DANGSUGAR and HONYFLOUR. Likewise, the Oil & Gas index gained 0.3% consequent on the 4.1% appreciation in OANDO.
 
Market Breadth Strengthens
Investor sentiment strengthened considerably today as market breadth (advancers’/decliners’ ratio) improve to 3.1x (from Yesterday’s 0.7) as 22 stocks advanced against 7 decliners. At the top of the gainers’ list were CUTIX (+8.3%), HONYFLOUR (+5.2%) and AGLEVENT (+4.9%) while BERGER (-5.0%), AIRSERVICE (-4.7%) and STANBIC (-3.8%) topped the losers’ list. At the moment, investor sentiment towards stocks continues to be driven by earnings releases as seen in the continuous sell off observed in GUINNESS (-2.1%) due to its unimpressive Q3 result. Nonetheless, the current price of some value stocks presents an attractive entry for investors with a medium to long term investment horizon.

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