Stock Market Starts Week Bullish

The Nigerian bourse opened on a positive note for the first time in three (3) successive weeks. The All Share Index rose 34bps to close at 25,249.49 points whilst market capitalization increased N29.3bn to settle at N8.7tn. As a result, YTD loss trimmed to –6.0%. Market performance was broadly driven by bargain hunting in Consumer Goods bellwether NIGERIAN BREWERIES (+ 4.2%) which took a beating last week. Market activity however weakened as volume and value traded fell 78.4% and 50.5% to 103.4m units and N980.0m in 2,160 deals.

Renewed Sell Pressure on NB Drags Down Nigerian Bourse

The All Share Index was unable to sustain yesterday’s positive performance as it fell 30bps to close Thursday at 25,055.29 points following renewed sell pressure on NIGERIAN BREWERIES (-3.8%). Consequently, YTD loss worsened to -6.8%, while market capitalisation declined by N25.9bn to settle at N8.7tn. Market activity also softened as volume and value traded dipped 10.8% and 14.6% to 144.4m units and N1.5bn respectively.

Bears Retain Grip on FMCGs

Equities Sink Further as Large-Cap Stocks Extend Losses

The All Share Index (ASI) of the Nigerian Bourse closed negative on Tuesday, losing 84bps to close at 25,032.17 points, as the bearish run in large-cap FMCGs continued unabated. Consequently, investors lost N73.5bn as market capitalization declined to N8.6tn, while MTD and YTD loss of the benchmark index worsened to 3.9% and 6.9% respectively. Today’s performance was dragged by sustained sell-pressure on NIGERIAN BREWERIES (-5.0%), in addition to losses in NESTLE (-3.9%) and ZENITH (-3.8%).

Equities Kick-start Week Lower as FMCGs Flounder

The equities market closed lower at the end of trade on Monday as the All Share Index (ASI) fell 38 bps to close at 25,244.65 points. Today’s weak performance is attributable to losses in NIGERIAN BREWERIES (-5.0%), STANBIC (-4.5%) and ETI (-3.1%) which offset gains in market heavyweight – DANGCEM (+0.5%). As a result, market capitalisation declined by N33.0bn to settle at N8.7tn. Market activity also moderated as volume and value traded fell 29.7% and 46.6% to settle at 141.9m units and N1.4bn respectively.

Review and Outlook of Global, Nigeria Markets

Global Market Review
Performance across the developed markets was largely bullish. Indices in the Advanced markets trended higher on Donald Trump’s plan to overhaul business taxes and cut regulation in the United States. This is expected in in the coming weeks. The US S&P 500 and NASDAQ added 0.5% and 0.9% W-o-W respectively driven by interest in Aviation stocks. Also, the UK FTSE rose 0.7% as manufacturing and industrial production in December surpassed expectation and boosted confidence in the British economy.

Nigerian Bourse Rebounds

The local bourse bucked bearish trend observed in the last three trading sessions as buy interest in DANGCEM (+0.7%), GUARANTY (+1.4%), UBA (+0.8%) and ACCESS (+0.8%) drove the benchmark index 5bps northwards to settle at 25,460.45 points on Wednesday. Accordingly, market capitalization improved by N4.8bn to settle at N8.8tn while YTD return steadied at –5.3%. Activity level was mixed as volume surged 67.9% to 347.8m units while value traded waned 10.3% to N1.4m.

Mixed Sector Performance

Stock Market Sustains Downtrend

The current downtrend in the local bourse continued on Tuesday as the All Share Index closed in the red for the third consecutive trading session, down 0.6% to settle at 25,446.66 points despite a 0.6% uptick in DANGCEM. Accordingly, YTD performance worsened to -5.3% the decline today can be broadly attributed to price depreciation in NESTLE (-5.0%), NIGERIAN BREWERIES (-2.0%) and ZENITH (-2.2%). Consequently, the market lost N53.1bn as the total capitalization closed at N8.8tn.

Equities Open the Week Bearish

Similar to the previous week, the All Share Index opened the week bearish, sustaining the negative sentiment from the previous trading session. The benchmark index declined 0.8% to settle at 25,600.64 points whilst YTD loss worsened to -4.7%. Today’s performance was broadly shaped by sell-offs in Industrial Goods and Banking bellwethers including DANGCEM (-1.8%), UBA (-4.0%) and ZENITH (-1.5%). Accordingly, investors lost N69.6bn as market capitalization closed at N8.8tn.