Nigerian Market Sustains Uptrend

After depreciating on the first three trading days of the year, Nigerian equities sustained the uptrend observed last Friday as the All Share Index recorded a 1.3% appreciation at the close of trade on Monday. Performance today was largely driven by a rebound in the prices of DANGCEM (+1.2%), UCAP (+9.6%), TOTAL (+0.3%) and GUARANTY (+4.9%). Consequently, market capitalization improved N113.1bn to settle at N9.2tn. Activity however waned as volume and value traded declined 0.6% and 7.4% to 209.0m units and N1.4bn with a total of 3,423 deals.

Equities Market Review and Outlook

Performance in the first trading week of the New Year was majorly dragged by profit taking in market bellwethers as the broader index closed negative on 3 of the 4 trading sessions. The only positive performance was recorded on Friday (+0.2) as gains in Tier-1 counters in the Banking space - ZENITH (+1.8%), ACCESS (+2.3%), UBA (+1.5%), ETI (+1.2%) FBNH (+1.7%) and GUARANTY (+0.3%) - lifted the market. Consequently, the All Share Index (ASI) declined 2.3% W-o-W to close at 26,251.39 points while market capitalization depreciated by N214.4bn to settle at N9.0tn.

Stocks’ Values Plunge Further at the Exchange

The equities market closed negative on Thursday, as the All Share Index (ASI) tumbled 1.1% to close at 27,212.09 points. Accordingly, investors lost N97.4bn as market capitalization settled at N9.0tn. The decline was majorly driven by sell sentiment in market heavyweight - DANGCEM (-4.0%). Ex-DANGCEM, the ASI would have gained 35bps. However, market activity improved as volume and value traded rose 121.8% and 14.4% to close at 137.7m units and N898.7m respectively.

Mixed Sector Performance

NSE Reviews Composition of Market Indices

The Nigerian Stock Exchange (NSE) on Tuesday announced the review of the NSE-30, and the seven sectoral indices of the Exchange.

These Indices are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension and the NSE Lotus Islamic Indices.

The Exchange, in a statement, stated that these indices are normally reviewed bi-annually (June and December) except for NSE Pension index that is reviewed once in the year (December).

Equities Kick-Start the Year Bearish

The Nigerian Equities market got off the year to a negative start as the All Share Index (ASI) lost 96bps to close on Tuesday at 26,616.89 points. Accordingly, market capitalisation contracted by N88.7bn to settle at N9.2tn. Today’s performance was dragged by losses in NIGERIAN BREWERIES (-4.1%), GUARANTY (-2.8%) and ZENITH (-2.4%). However, activity level was mixed as volume traded marginally rose 0.1% to settle at 106.4m units while value traded declined by 20.5% to close at N1.2bn.

Insurance Index Sole Gainer amidst Sell-offs across Sectors

Stock Market Sustains Uptrend Ahead of Year End

The local equities market sustained its uptrend at the close of trade on Thursday on account of improved buying interest in Banking Sector bellwethers - GUARANTY (+5.8%) and ZENITH (+1.4%) – as well as SEPLAT (+2.6%). The All Share Index rose 35bps to settle at 26,782.93 points whilst YTD loss also trimmed to -6.5%. Consequently, investors gained N32.6bn as market capitalization closed at N9.2tn. However, market activity softened as volume and value traded waned 10.5% and 29.6% to settle at 116.8m units and N877.2m respectively with a total of 2,392 deals.

Bullish Sentiment Lingers as Stocks Rise for 3rd Session

The All Share Index rose 76bps to close at 26,688.25 points at the end of today’s trading as the Nigerian bourse closed positive for the 3rd consecutive session. Market capitalization also rose N69.6bn to settle at N9.2tn. Today’s performance was largely as a result of gains in Consumer Goods and Banking large cap stocks - NIGERIAN BREWERIES (+3.3%), ZENITH (+1.7%) and ACCESS (+4.9%). Market activity however weakened, with volume and value traded declining 6.0% and 13.0% to close at 130.6m units and N1.2bn respectively in 2,257 deals.

Exchange’s Commission Suspends Erring Market Operator

The Securities and Exchange Commission (SEC) has suspended Heritage Capital Markets Ltd together with its Directors and sponsored individuals in connection with the unauthorized sale of shares belonging to an investor and its refusal to comply with the Commission’s directives in that regard.

In a notice dated December 21, 2016, SEC stated warned that in view of the above, the general public is hereby informed that the suspension is indefinite and shall remain in force pending the resolution of the matter against the Operator.

Benchmark Index Tilts Positive on Energy Stocks

Nigerian equities rebounded from a 3-day losing streak as the All Share Index added 18bps to close on Thursday at 26,464.82 points. Also, market capitalization expanded N16.1bn to settle at N9.1tn and YTD loss eased to 7.6%. Today’s performance was mainly driven by a renewed interest in Oil & Gas counters such as FORTE (+10.2%), CONOIL (+10.2%), and OANDO (+4.3%) which had been significantly beaten by profit takers in the last three sessions.