Last Week’s Gains Continue on 1st Trading Session

The Nigerian equity market’s positive close last week was extended to the 1st trading session of the week as the All Share Index appreciated 0.3% to close at 25,890.94 points. Market capitalization increased N24.4bn to close at N8.9tn further moderating YTD loss to 9.6%. Sustained optimism in the Bourse was on account of positive sentiments toward Banking stocks – FBN HOLDINGS (+4.3%), STERLING (+7.4%) and UBA (+3.0%). Activity level waned as volume and value traded declined 0.3% and 0.1% to close at 186.3m units and N1.3bn respectively.

Gain Across All Sectors
All indices under our coverage trended northwards. Gains in CUSTODYINS  and MANSARD (+4.9% each) pulled the Insurance Index up 0.9% to top sector performance while the Oil & Gas and Banking Indices trailed, up 0.5% apiece amid improved interest in FBN HOLDINGS (+4.3%), STERLING (+7.4%), OANDO (+4.9%) and TOTAL (+3.8%). Gains in TIGERBRAND (+9.9%), INTBREW (+5.0%) and FLOURMILLS (+0.2%) was not able to pull the Consumer Goods Index above the water as it ended the day flat.

Positive Sentiments Sustained
Bullish sentiment was sustained as market breadth - measured by the advancers and decliners ratio -closed improved to 1.8x (against 1.6x last week). A total of 20 stocks advanced against 11 declining stocks. TIGERBRAND (+9.9%), STERLING (+7.4%) and INTBREW (+5.0%) led the gainers while UNIONDIC (-5.0%), VITAFOAM (-4.8%) and IKEJAHOTEL (-4.8%) led losers. While we expect more corporate announcements to drive activities this week as more players in the Banking and Consumer goods space submit their scorecards for FY: 2015, we also see some profit taking following last week’s bargain hunting. Against this backdrop, we advise investors to overweigh on stock with consistent dividend paying history.