Equity Performance Rebounds at the Exchange

Contrary to yesterday’s marginal negative close, the Nigerian equities market ended today’s trading session in the green zone. The All Share Index gained 0.4% to settle at 24,746.16 points whilst market capitalization improved N37.2bn to close at N8.5tn. Today’s performance was buoyed by price gains in GUARANTY (+2.5%), ZENITH (+1.8%), WAPCO (+1.3%) and DANGCEM (+0.2%). Market activity also strengthened as volume and value traded increased by 67.3% and 57.3% to close at 271.0m units and N1.6bn.
 
ETI FY: 2015 PAT down 66.6%
All sectors ended today’s trading session higher. Buoyed by the continuous ascent in GUARANTY (+2.5%) and ZENITH (+1.8%), the Banking index rose 1.4%.  Earlier today, ETI (-0.2%) released its FY: 2015 result with gross revenue increasing 10.9% Y-o-Y to N542.7bn while PAT declined 66.6% Y-o-Y to N21.3bn. The Industrial and Consumer Goods also inched 0.6% and 0.2% higher respectively as  a result of uptrend in WAPCO (+1.3%), DANGCEM (+0.2%) and NIGERIAN BREWERIES (+0.5%). Price appreciation in MANSARD (+4.6%) pushed the insurance index 0.3% northwards. The Oil & Gas index also gained 0.1% on the back of the rise in OANDO (+1.7%) and ETERNA (+4.7%)

Investors’ Sentiment Strengthens
Improved investors’ sentiments was observed today as market breadth (advancers’/decliners’ ratio) closed at 1.3x on the back of 24 advancing stocks against 18 declining stocks. OKOMUOIL (+10.1%), E-TRANZACT (+10.0%) and UAC-PROP (+5.0%) sat comfortably atop of the gainers’ list while LAWUNION (-8.6%), AFRPRUD (-7.7%) and NASCON (-5.0%) led laggards. With Yesterday’s marginal decline and today’s positive close, the market seems to have gotten over the unexpected MSCI’s statement which led to a 2.7% decline on Monday. Thus, we believe this positive momentum may be sustained tomorrow. However, we advise value investors to balance their optimism with caution.

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