Negative Starts for the Nigerian Bourse

The Nigerian equities market started the week in the red zone for the 3rd consecutive week as the All Share Index declined 0.3% to settle at 24,765.10 points by the end of today’s trade. Market Capitalization also dropped N29.2bn to N8.5tn. Today’s negative close was broadly as a result of the profit taking activities in FORTE OIL (-9.1%), ZENITH (-0.7%) and GUINNESS (-1.0%). Market activity also weakened as volume and value traded declined 23.4% and 49.4% to close at 144.5m units and N765.9m respectively.
 
Impressive Q1:2016 Result
The Banking Index recorded the most appreciation today, buoyed by the price appreciation in GUARANTY (+0.1%), ACCESS (+1.8%) and UBA (+1.3%). Access Bank Plc. released an impressive Q1: 2016 result earlier today, with gross earnings appreciating by 4.5% to N80.3bn whilst PAT also grew 42.1% to N19.4bn. The Consumer and Industrial Goods indices also trended 0.2% and 4bps northwards on the back of 0.4%, 1.7%, 0.9% and 4.9% rise in NIGERIAN BREWERIES, 7-UP, DANGSUGAR and CCNN respectively. On the other hand, the Oil and Gas index (-4.2%) was dragged into the red zone by a 9.1% and 1.1% depreciation in FORTE OIL and OANDO whilst MANSARD (-4.9%) also pushed the Insurance index (-1.5%) into a negative close.
 
More Q1:2016 Results to Shape Performance
Contrary to the last trading session from last week, investor sentiment weakened today as Market breadth (advancers’/decliners’ ratio) closed at 0.7x on the back of 15 advancing stocks against 22 declining stocks. LEARNAFRCA, CCNN and UNIONDICON led the gainers at 4.9% a piece while FORTE OIL (-9.1%), AIRSERVICE (-5.0%) and PORTPAINT (-5.0%) led the laggards. We believe today’s negative close may extend to tomorrow as investors take profit, especially on the stocks that rallied last week. Nonetheless, further influx of Q1:2016 earnings scorecards are expected to also determine the direction of the market in the interim.

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