Stock Exchange Rebounds after Downtrend

The Nigerian Bourse reversed the negative trend which began last week, as the All Share Index rose 33bps to close on Tuesday at 36,531.62 points. Similarly, market capitalization increased N41.2bn to settle at N12.6tn. The positive performance was broadly driven by gains in NIGERIAN BREWERIES (+2.6%), ZENITH (+0.8%) and DANGSUGAR (+2.8%). However, market activity weakened as volume and value traded moderated 21.2% and 32.9% to 199.9m units and N1.8bn respectively.
 
Mixed Sector Performance
Performance across sectors was mixed, with 2 of 5 indices trending northwards, 2 closing in the red and one closing flat. The Consumer Goods index led gainers, up 1.2% following price appreciation in NIGERIAN BREWERIES (+2.6%) and DANGSUGA (+2.8%). Similarly, the Banking index followed closely, gaining 6bps due to upticks in ZENITH (+0.8%) and ACCESS (+1.3%). Contrarily, the Insurance index closed 60bps lower consequent on sustained sell offs in MANSARD (-2.8%) and LAWUNION (-4.0%), while losses in DANGCEM (-0.5%) pulled the Industrial Goods index 20bps southwards. The Oil & Gas index closed flat.

Investor Sentiment Improves
Investor sentiment as measured by market breadth (advancers/decliners ratio) expanded to 1.5x from 0.6x yesterday - 22 stocks advanced while 14 declined. NASCON (+10.2%), CAVERTON (+4.2%) and FIRSTALUM (+4.0%) led the gainers’ chart while CILEASING (-5.0%), TRANSCORP (-4.9%) and CADBURY (-4.8%) were today’s worst performers. With the positive turn of the market today, we expect sentiment in successive trading sessions to reflect investors’ reactions to the release of 9M:2017 results.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, three counters traded – CSCS, WAMCO and NIPCO - with total volume and value closing at 3.8m units and N27.3m respectively. CSCS was the lone gainer, up 9.3% while the others closed flat.

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