Global Equity Market Review and Outlook
Performance of the global equity markets under our coverage was mixed, albeit skewed towards the red as benchmark indices in developed markets outperformed whilst indices in the emerging markets lagged. In the commodities market, despite the threat posed by the increasing output of US Shale, oil prices trended 11bps northwards W-o-W as Brent Crude settled at US$63.38/b (as of writing).
Global Equity Market Review and Outlook
Photo L-R: Hon. Suraj Adekunbi, Speaker, Ogun State House of Assembly; Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Senator Ibikunle Amosun, Executive Governor, Ogun State; Abimbola Ogunbanjo, President, NSE and Abayomi Shobande, Head of Service, Ogun State during a Closing Gong Ceremony at The Exchange on Thursday.
The gain recorded in the Nigerian equities market yesterday, can be viewed as a “dead cat bounce" as the benchmark index continued on its downward trend today. The All Share Index shed 1.0% to settle at 38,534.64 points while YTD return retreated to 43.4%. Accordingly, market capitalization fell by N135.8bn to N13.4tn. Price depreciations in large cap stocks - GUARANTY (-4.8%), ZENITH (-3.9%), NIGERIAN BREWERIES (-2.6%) and DANGCEM (-0.5%) were the major drags to market performance.
The Nigerian equities market rebounded on Tuesday, albeit a marginal gain, following a 2-day negative trend as the All Share Index (ASI) rose 3bps to close at 38,924.63 points while YTD gain stood at 44.8%. Accordingly, market capitalization increased by N3.7bn to N13.6tn. Today’s performance can be majorly accorded to buy interest in UBN (+10.0%), DANGSUGAR (+3.9%) and GUARANTY (+0.6%). Similarly, activity level improved as volume and value traded increased 32.0% and 445.4% to 462.7m units and N26.8bn respectively.
In line with expectation, the equities market opened the week negative as the All Share Index fell 88bps to 38,913.99 points while YTD return retreated to 44.8%. Consequently, investors lost N119.6bn in value as market capitalization settled at N13.6tn. Market performance today can be primarily attributed to profit taking in bellwether Industrial Goods and Banking stocks - DANGCEM (-1.7%), ZENITH (-3.3%) and UBA (-5.0%). In the same vein, activity level declined as average volume and value fell 33.9% and 4.0% to 350.6m units and N4.9bn respectively.
The bullish run in the Nigerian equities market extended into the seventh consecutive trading session on Thursday as the All Share Index rose by 1.2% to settle at 39,534.14 points while YTD return improved to 47.1%. Accordingly, market capitalization added N159.8bn to close at N13.8tn. The day’s positive performance can be majorly attributed to sustained buying interest in NIGERIAN BREWERIES (+2.2%), NESTLE (+6.0%) and ZENITH (+5.6%). Likewise, activity level improved as volume and value traded grew 50.6% and 39.2% to 1.1bn units and N10.2bn respectively.
The Nigerian Equities market recorded a positive close for the 6th consecutive trading session on Wednesday, as the benchmark index added 151 basis points (bps) to settle at 39,075.30 points – 37-month high. Consequently, YTD return of the All Share Index (ASI) expanded to 45.4% as market capitalisation increased by N202.3bn to N13.6tn. Similar to the previous session, positive market performance was spread across sectors, although the largest contributors were banking stocks- ZENITH (+4.1%), UBA (+5.8%), and GUARANTY (+0.1%) - as well as DANGCEM (+0.4%) and NIGERIAN BREWERIES (+1.7%).
The All Share Index (ASI) closed in the green for the 5th consecutive day, rising 1.4% to settle at 38,494.43 points – a level last seen in October 2014. Thus, YTD return of the benchmark index expanded to 43.2% while market capitalization rose by N181.0bn to close at N13.4bn. Although the rally was broad-based, the day’s positive close can be largely attributed to gains in bellwethers - DANGCEM (+1.7%), NIGERIAN BREWERIES (+3.4%) GUARANTY (+0.7%) and ZENITH (+0.6%).
The All Share Index (ASI) closed the first trading day at 37,974.58 points, adding 8bps to open the week in the green. This marked the 4th consecutive day of a positive close. As a result, YTD return expanded to 41.3% as market cap increased by N10.8bn to settle at N13.2tn. The day’s positive performance was buoyed by buying interest in Consumer Goods bellwethers - NESTLE (+1.2%) and NIGERIAN BREWERIES (+0.9%) - and FBNH (+2.5%). However, activity level was mixed as volume traded marginally inched 1.0% higher to 500.2m units while value traded declined 11.4% to N6.4bn.