The Nigerian Bourse was unable to maintain yesterday’s momentum as the All Share Index declined 6bps to settle at 24,809.29 points by the end of today’s trading session. Market Capitalization also trended in the same direction as the ASI as investors lost N5.0bn, to settle at N8.5tn. Today’s negative performance was broadly driven by continuous selloffs in FORTE OIL (-5.0%) and profit taking in ETI (-1.2%) and NIGERIAN BREWERIES (-0.4%), offsetting the impact of the appreciations in FBNH (+5.3%), UNILEVER (+5.0%), GUARANTY (+0.7%) and ZENITH (+0.8%). Market activity was however mixed as volume traded grew 34.4% while value traded inched 10.3% lower to 285.0m units and N1.3bn respectively.
Decline in Profit After Tax
Amidst a carnival of declines, the Banking index was the only shining light today as it grew 0.4% on the back of price appreciation in sector bellwethers: FBNH (+5.3%), GUARANTY (+0.7%) and ZENITH (+0.8%). The index grew despite Diamond Bank Plc’s FY 2015 results released earlier today with PAT down 77.8% to N5.7bn. On the other hand, the Oil & Gas index shed 2.1% as a result of the decline in FORTE OIL (-5.0%) and TOTAL (-4.7%) despite Mobil Nigeria Plc’s Q1 2016 result released today which showed a 22.0% growth in PAT to N1.8bn whilst the Consumer Goods index depreciated 2bps on the back of profit taking in NIGERIAN BREWERIES (-0.4%) and DANGSUGAR (-3.0%). The Industrial Goods and Insurance indices also eased 1bp and 7bps respectively as DANGCEM (-1bp), CUTIX (-3.5%), AIICO (-1.3%) all closed lower.
Market Breadth Plummets
The strengthened investor sentiment from yesterday was not sustained today as market breadth (advancers’/decliners’ ratio) weakened to 0.9x (from Yesterday’s 3.1x) as 19 stocks advanced against 22 decliners. FBNH (+5.3%), UNILEVER (+5.0%) and HONYFLOUR (+4.9%) topped the gainers’ list while GLAXOSMITH (-9.6%), UAC-PROP (-9.4%) and NAHCO (-5.0%) led losers. We expect the market to trade sideways in the coming sessions as investor sentiment remains jolted by earnings releases whilst more Q1 2016 results trickle in.