Nigerian Equities Market Bucks 3-day Rally

The Nigerian equities market bucked a 3-day rally in Monday’s trading session as the benchmark index slid 12bps to settle at 33,235.28 points, trimming YTD gain to 23.7%. Today’s Performance was dragged by profit-taking in NESTLE (-4.2%), INTBREW (-8.6%), FBNH (-3.6%) and TOTAL (-3.9%). Consequently, investors lost N14.3bn as market capitalization retreated to N11.5tn. However, activity level was mixed as volume traded fell 27.0% to 501.1m units while value traded rose 0.7% to N6.1bn.

Mixed Performance across Sectors
Performance across sectors was mixed, although positively skewed, as 3 of 5 indices appreciated. The Insurance index advanced the most, up 1.1% on account of upticks in MANSARD (+4.7%) and CONTINSURE (+3.8%), while gains in ACCESS (+3.5%) and GUARANTY (+0.6%) drove the Banking index 0.5% higher. Similarly, the Industrial Goods index rose 0.1% on the back of gains in DANGCEM (+0.2%) and CCNN (+5.0%). On the flip side, the Oil & Gas and Consumer Goods indices slid 1.1% apiece on account of profit-taking in TOTAL (-3.9%) and NESTLE (-4.2%) respectively.

Market Breadth Wanes
Investor sentiment as reflected by the market breadth (advancers/decliners’ ratio) declined from 2.6x recorded last Friday to 0.7x - 20 stocks advanced against 29 which declined. The best performing stocks were ASHAKACEM (+10.1%), MAYBAKER (+9.9%) and HONYFLOUR (+9.6%) while INTBREW (-8.6%), UACN (-5.8%) and AIICO (-5.4%) were the worst performers. Whilst today’s performance was mainly dragged by profit-taking in some stocks that had appreciated in the previous week, we do not expect the downtrend to persist beyond the short term as positive developments in the economy continue to bolster investors' appetite for equities.