Local Bourse Sustains Gain for Fourth Consecutive Session

The equities market closed higher for the fourth consecutive session on Monday as the All Share Index (ASI) improved 1.4% to settle at 36,831.93 points, while YTD gain expanded to 37.1%. Investors in turn gained N175.9bn as market capitalization stood at N12.7tn. The major drivers of today’s performance were DANGCEM (+2.9%), GUARANTY (+3.2%) and ZENITH (+0.9%). Contrarily, activity level waned as volume and value traded dipped 28.6% and 20.0% to 262.2m units and N3.0bn respectively.

All Sector Indices Close in the Green

Weekly Equity Market Review and Outlook

Sentiment on the Nigerian Bourse this week was broadly positive as the All Share Index gained on 3 of 4 sessions to close at 36,320.98 points, indicating a 2.5% gain W-o-W and a YTD return of 35.1%. In turn, market capitalization increased by N285.3bn to settle at N12.5tn. The week started off on a negative note, closing 0.4% lower on Tuesday as investors took profit in stocks that had gained in prior week.

Bargain Hunting Drives Benchmark Index Higher

The equities market rebounded at the end of Wednesday’s trade as the All Share Index (ASI) expanded 15bps to close at 35,358.6 points while YTD return increased to 31.6%. ZENITH (+1.6%), UBA (+2.4%) and STANBIC (+1.2%) were the major drivers of today’s performance. However, activity level softened as volume and value traded fell 72.6% and 53.0% to 174.1m units and N2.7bn respectively.

Mixed Performance across Sectors

SEC Docks BGL Chiefs

The Securities and Exchange Commission (SEC) on Thursday arraigned the Deputy Managing Director of BGL Plc, Chibundo Edozien, in a Wuse Chief Magistrates’ Court for conspiring with some staff of the company to defraud the investing public.

The accused person, of Plot 417 Tigris Crescent, Maitama, Abuja, was docked on charges of criminal conspiracy, breach of trust and cheating.

Edozien also appeared in court on behalf of M/S BGL plc, its asset management and securities limited subsidiaries.

Equities Market Review and Outlook

Performance for the last week of the month of September was mixed as the local bourse gained on 3 of 5 days. Despite this, the All Share Index (ASI) marginally lost 0.1% W-o-W to close at 35,439.38 points while YTD return moderated to 31.9%. Investors lost N16.8bn as market capitalization settled at N12.2tn. The drag in performance was largely on account of declines in Consumer Good counters – NIGERIAN BREWERIES (-3.5%), GUINNESS (-4.3%) and NESTLE (-0.8%). However, activity level was mixed as average volume rose 20.9% to 265.2m units while value traded fell 21.1% to N2.8bn.

Benchmark Index Extends Gains

At the close of trading Thursday, the benchmark index gained 93bps to settle at 35,429.31 points while YTD return improved to 31.6%. Accordingly, market capitalization added N112.3bn to N12.2tn. Today’s positive close is largely attributed to gains in DANGCEM (+1.4%), ZENITH (+3.5%) and GUARANTY (+1.2%).  In the same vein, activity level improved as volume and value traded spiked 153.8% and 214.8% to settle at 346.2m units and N4.0tn respectively.

Mixed Sector Performance

Bargain Hunting Drives Market Rebound

At the close of trade today, the market snapped a 2-day losing streak as the All Share Index rebounded 44bps to settle at 35,103.40 points while the YTD return advanced to 30.6%. Accordingly, market capitalization added N52.4bn to settle at N12.1tn. The upturn in performance was majorly on account of gains in DANGCEM (+1.9%) as well as ZENITH (+1.8%) and NESTLE (+0.4%). Ex-DANCEM, market would have lost 18bps. However, activity level moderated as both the volume and value traded dipped 72.7% and 64.9% to 136.4m units and N1.3bn respectively.

Equities Open Week Lower Despite Positive Outlook

The Equities market opened the week on a negative note as the benchmark index contracted 0.4% to close at 35,361.52 points while the YTD gain retreated to 31.6%. Resultantly, investors lost N44.8bn as market capitalization settled at N12.2tn. The drag in today’s performance was majorly on account of losses recorded in NIGERIAN BREWERIES (-1.8%), UBA (-3.0%) and WAPCO (-2.9%). Similarly, activity level waned as volume and value traded plunged 44.3% and 62.8% to 107.1m units and N1.4bn respectively.  

Industrial Goods Index Leads Sector Decliners

Weekly Market Review and Outlook

Global Equities Review and Outlook
Following a 2-day meeting, the US FED expectedly voted to keep its benchmark interest rate unchanged at 1.00%-1.25%. The Fed’s statement after the meeting however hinted on one more rate hike in 2017 and guided on plans to begin unwinding its Balance sheet starting from October 2017. Also, ahead of the OPEC meeting in Vienna scheduled for today, global oil prices have continued to trade above US$55.00/b as oil traders await the outcome of the meeting.