Weekly Equities Market Review and Outlook

The market started the week on a positive note, closing in the green on the first two days of the week. However, following the conclusion of the MPC meeting on Tuesday and the perceived uninspiring deliberations from the meeting coupled with the subsisting weak sentiment, there was increased profit taking activity leading to sell offs across sectors which drove the broader index southwards on Wednesday. The market recovered on Thursday and the gains recorded during the week, outweighed the losses hence the Benchmark Index appreciated 0.8% WTD to settle at 25, 889.91 points. Similarly, a total of N70.6bn was gained by investors as market capitalisation rose to N8.9tn. Activity level strengthened as average volume and value traded improved 79.5% and 43.0% to 387.8m units and N2.6bn respectively.

Across sectors, the Consumer Goods Index was the clear cut leader, surging 5.0% WTD majorly due to increased buying activity in NIGERIAN BREWERIES (+12.1%) and UNILEVER (+10.2%). In the same vein, the Banking sector index improved 1.4% following gains in ZENITH (+5.8%) and UBA (+3.0%). On the flipside, the Oil & Gas index dipped 3.7% W-o-W following sell offs in SEPLAT (-14.3%) and MOBIL (-8.8%). The Insurance index also lost 1.6% while the industrial goods index fell 0.4% W-o-W

Investor sentiment in the market remained negative this week as 21 stocks advanced WTD against 37 declining stock leading to a  market breadth (advancers/decliners ratio) of 0.6x. The top performing stocks in the market this week were FIDELITY BANK (+14.2%), NIGERIAN BREWERIES (+12.1%) and VITAFOAM (+10.0%) and while the biggest losers were AFRIPRUD (-21.6%), NASCON (-14.2%) and CADBURY (14.1%). As majority of the Bellwethers in the market have released their results, there is little left to stoke investors’ confidence in the interim, hence we expect market to continue to trade sideways in the sessions ahead.