Market Returns to the Green

The Nigerian equities market rebounded from the negative start to the week yesterday (-0.6%) as the All Share Index appreciated 0.4% today to settle at 25,454.75 points. Market performance was majorly buoyed by renewed buying interest in NIGERIAN BREWERIES (+3.9%), ZENITH (+1.1%) and GUARANTY (+0.8%). Investors recouped a total of N36.4bn as market capitalization rose to N8.8tn. However, activity level waned as volume and value traded fell 26.9% and 39.0% to 177.4m units and N1.0bn respectively.

Mixed Performance across Sectors
Performance across sectors was mixed as the Consumer Goods and Banking sector indices closed higher, appreciating 1.5% and 0.4% respectively on account of gains in NIGERIAN BREWERIES (+3.9%), ZENITH (+1.1%) and GUARANTY (+0.8%). The Insurance index (-0.7%) declined the most due to price depreciation in MANSARD (-3.2%), followed by the Oil & Gas index (-0.3%) which was pressured by depreciation in OANDO (-4.4%). The Industrial Goods index also eased, down 6bps on account of 4.9% decline in CCNN.
 
Sentiments Stay Weak
Despite the positive close, sentiments remain weak as 16 tickers advanced while 18 declined. Thus, market breadth improved from 0.7x yesterday to 0.9x at the close of trading. The top performing stocks were ETRANZACT (+5.0%), TIGERBRANDS (+5.0%) and NASCON (+4.9%) while PORTPAINT (-5.0%), CCNN (-4.9%) and LIVESTOCK (-4.8%) were the worst performing stocks. In the absence of a major driver to stoke investors’ sentiment, we expect oscillatory movements in market performance to persist on account of bargain hunting and profit taking activities.

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