Weekly Market Report –Week Ended April 29, 2016

There was a mixed outing for the Nigerian Equities market this week, as the broader index advanced on 3 days and declined on 2 days. The undulating trend in market performance this week was broadly driven by investors’ reactions to corporate scorecards as well as dynamics of profit taking and bargain hunting activities .For the third consecutive week, the bears strengthened their hold on the first day of the week as the All Share index fell 0.3% following profit taking by investors.

However, this trend was reversed on Tuesday as the ASI appreciated 0.2% on account of bargain hunting in value stocks. On Wednesday, the market returned to the red zone as unimpressive earnings releases from corporates triggered sell offs across board driving the benchmark index 0.1% lower. In a turn of events, the Equities market closed in the green on Thursday, up 0.6% while trending higher (+0.4%) on Friday. The ASI appreciated 0.9% W-o-W to settle at 25,062.41 points while YTD losses were further trimmed to 12.5%. Market capitalization appreciated N73.1bn to N8.6tn. Activity level also strengthened as average volume and value traded improved 36.8% and 22.1% respectively to 241.9m units and N1.4bn respectively.

Performance across sectors was mixed this week. The Oil & Gas index declined the most, down 9.7% W-o-W and was also the worst performing sector index for the month (-10.7%) following losses in FORTE (-22.1%) and MOBIL (-4.6%). The Industrial Goods and Insurance indices also declined 2.0% and 0.3% W-o-W respectively, on account of sell offs in WAPCO (-8.1%) and CUSTODYINS (-2.4%). On the flipside, the  Consumer goods index was up 4.2% W-o-W on the back of gains in NIGERIAN BREWERIES (+9.6%) while the Banking index appreciated 3.3% W-o-W due to bargain hunting in GUARANTY (+4.9%) and ZENITH (+4.5%).

Following the 2nd consecutive weekly gain, Investor sentiments waned this week as market breadth settled at 1.1x from 1.4x last week The top performing stocks this week were ETERNA (+27.1%), HONYFLOUR (+15.6%) and AGLEVENT (+14.6%) while AIRSERVICE (-22.6%), FORTE OIL (-22.1%) and LIVESTOCK (-14.7%) were the worst performing stocks. As the month winds out, the index declined 1.7% M-o-M, however, we do not expect any significant improvement in performance in the coming month as there are no major drivers to stoke investor sentiments for equities.

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