Equities Market Review and Outlook –Week Ended 18th September, 2015

After adding 0.2% each in the last two consecutive sessions, the All Share Index ended the week in the red, declining 0.2% to close the week at 30,332.68pts. Equally, market capitalisation fell N26.5bn to settle at N10.4tn for the week. Today's decline was majorly driven by losses in DANGCEM (-1.8%), OANDO (-4.7%) and STANBIC (-1.6%). On the contrary, market activities closed the week up as volume and value rose 57.4% to 333.4m units and 28.8% to N3.5bn.

Most sector indices posted positive returns today with the Insurance index leading sector gainers with 1.0% return attributable to the appreciations in CONTINSURE (+4.3%) and CUSTODYINS (+1.5%). This was followed by the Banking index which advanced 0.8% against increases in GUARANTY (+1.9%) and ACCESS (+2.6%). Equally, the Consumer Goods and Oil & Gas indices rose 0.4% and 0.1% accordingly. Conversely, the Industrial Goods index emerged lone loser with 0.9% on account of a 1.8% decline in DANGCEM.

Market breadth stayed positive at 1.4x (26 advancers/18 decliners). Highest gainers were E-TRANZACT (+10.0%), BERGER (+5.0%) and ETERNA (+4.8%) while DEAPCAP (-4.9%), COSTAIN (-4.9%) and OANDO (-4.6%) topped the losers' chart. Notwithstanding today's market performance, we note the increasing confidence in the market given recent uptrend observed in the market. Nonetheless, market direction in the coming sessions is dependent on MPC decisions. In light of the aforementioned, market activities in the coming session is expected to moderate slightly.

Weekly Equities Market Review
Equities performance in the Nigerian bourse were broadly positive this week as the All Share Index -- ASI - gained on 3 out of 5 trading days this week with the highest gain being the 2.3% increase recorded on Monday that thus pushed the index to cross the 30,000pts psychological mark. Nonetheless, market gains on subsequent days in the week moderated, bringing W-o-W performance to 2.2% and YTD return lower to -12.5% (vs. -14.3% last Friday). In like manner, market capitalization settled at N10.4tn after investors realised N207.8bn during the week. On the average, market activities were mixed W-o-W as average volume declined 1.7% to 276.7m while average value rose 2.6% to N2.8bn W-o-W. Noteworthy also, ZENITH emerged highest traded stock by value for the week recording a total of N2.5bn trade while AFRINSURE recorded the highest amount of activity by volume of transaction this week with a volume traded of 217.9m units.

Following the positive trend in the market this week, all sector indices closed in the green. The Banking index led sector gainers, closing 5.1% higher on the back of increases recorded in UBA (+18.0%) and ACCESS (11.2%). This was followed by the Insurance sector which rose 3.7% W-o-W as AIICO (+16.1%) and CONTINSURE (+15.3%) appreciated in value. Also, against the rise in GUINNESS (+12.3%) and FLOURMILL (+10.1) W-o-W, the Consumer Goods sector improved 3.2%. The Oil & Gas and Industrial Goods sectors followed with 2.7% and 0.7% respectively.

Market breadth measured by the ratio of advancers to decliners maintained a green close W-o-W at 2.6x as 56 stocks rose ahead of 22 stocks. The highest rising stocks for week were UBA (+18.0%), AIICO (+16.1%) and CONTINSURE (+15.3%) against VANLEER (-14.1%), HONYFLOUR (-10.9%) and COSTAIN (-9.4%) which declined the most for the week. While concerns about global growth outlook forced the US Fed to maintain its policy rates at a band near zero, we believe market performance in the coming week will be driven by decisions from the Nigerian MPC meeting set to hold next week. On the back of this, we expect the market to likely trade sideways in the week ahead.