Bulls Retain Territory at the Exchange

Photo L-R: Tinuade Awe, General Counsel & Head, Regulation, The Nigerian Stock Exchange (NSE); Olumide Orojimi, Head, Corporate Communications Department, NSE; Boluwatiwi Omidiji, CSR Analysts, NSE; Godstime Iwenekhai, Acting Head, Listings Regulation, NSE; Pai Gamde, Acting Head, Corporate Services Division, NSE and Douglas Kativu, Director GRI Africa at the Governance and Sustainability Disclosure Seminar in Lagos on Thursday.

The equities market extended its positive streak to the third consecutive trading day. At the close of trade today, the All Share Index (ASI) added 46bps to close at 25,418.08 points while YTD loss improved to -5.4%. Consequently, investors gained N40.4bn as market capitalization settled at N8.8tn. Market performance was largely boosted by NIGERIAN BREWERIES (+2.4%), GUARANTY (+1.7%) and ZENITH (+2.8%) which offset the decline in DANGCEM (-0.3%). On the other hand, activity level was mixed as volume traded rose 19.7% to settle at 279.9m units while value traded fell 11.1% to settle at N1.9bn.

Industrial Goods index; Lone Loser
Performance across sectors remained positive with the Industrial goods index emerging the lone loser dragged by a decline in DANGCEM (-0.3%). The Banking index topped the gainers’ chart driven by further gains in GUARANTY (+1.7%) and ZENITH (+2.8%) while the Consumer goods index added 96bps due to price appreciation in NIGERIAN BREWERIES (+2.4%) and UNILEVER (+0.3%). Likewise, gains in MANSARD (+1.3%) led the Insurance index to close 0.2% higher while the oil & Gas index marginally added 7bps despite TOTAL’s impressive FY:2016 report in which Revenue grew 39.9% Y-o-Y to N291.0bn while  PAT surged 265.6% Y-o-Y to N14.8bn. TOTAL declared a final dividend of N7.00 per share, implying 2.5% dividend yield. The positive close for the Oil & Gas index was on the back of gains in FORTE (+2.3%) and OANDO (+1.4%) which offset the decline in TOTAL (-1.9%).
Market Breadth Improves
Investor sentiment improved today as market breadth (advancers/decliners ratio) rose to 1.4x (from 1.1x recorded yesterday) consequent on 18 advancing stocks against 13 decliners. The best performing stocks were PORTPAINT (+4.5%), UAC-PROP (+4.4%) and STERLING (+4.3%) while 7UP (-9.6%), CUSTODYINS (-5.0%) and ASHAKACEM (-5.0%) declined the most. Given the uptrend in market lately with no major driver boosting performance, we believe the bullish streak may be short-lived. Nevertheless, we anticipate a positive close for the benchmark index in the week.