Market Opens the Year Positive

The Nigerian Equities market began the year on a positive note as the All Share Index rose 6bps to settle 38,264.79 points  while market capitalisation increased by N7.7bn to N13.6tn. Market performance was largely driven by price appreciation in ZENITH (+1.1%), ACCESS (+1.4%) and DANGSUGAR (+1.8%). However, activity level declined as volume and value traded fell 53.7% and 35.0% to 248.5m units and N1.8bn respectively.

Mixed Sector Performance
Sector performance was mixed as 3 of 5 indices closed northwards. The Insurance index gained the most, rising 0.9% on the back of buying interest in MANSARD (+4.7%), LINKASSURE (+4.6%) and AIICO (+3.9%). The Consumer Goods index trailed, up 0.3% as DANGSUGAR (+1.8%), PZ (+2.7%) and NASCON (+3.9%) recorded gains. The Industrial Goods index followed suit, adding 0.2% as investors took position in CAP (+5.0%). On the flip side, the Oil & Gas index depreciated 0.4% primarily due to price depreciation in FORTE (-3.4%) while the Banking index was dragged 4bps southward following losses in GUARANTY (-0.5%) and ETI (-4.3%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 2.3x from 1.1x recorded the previous Friday (29/12/2017) consequent on 27 stocks advancing against 12 decliners. Top performing stocks for the day were FCMB (+6.8%), CAP (+5.0%) and AFRIPRUD (+5.0%) while NEM (-4.8%), ETI (-4.3%) and TRANSEXPR (-3.8%) led laggards. In line with expectation, the market closed positive albeit marginal. Hence, we do not rule out the possibility of some profit taking in subsequent sessions.

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