Against the backdrop of rising oil prices and strong portfolio flows, the uptrend in market performance from the prior week was sustained this week as the All Share Index (ASI) closed in the green on all trading sessions save for Friday. Thus, the ASI gained 10.2% W-o-W to settle at 42,898.90 points while YTD return expanded to 12.2%. Consequently, investors gained a total of N1.5tn in value as market capitalization closed at N15.4tn. In the same vein, activity level strengthened as average volume and value traded rose 66.2% and 193.3% W-o-W to 1.0bn units and N13.8bn respectively.
Following the recent uptrend in performance, the equities market closed positive on Thursday as the All Share Index gained 2.9% to settle at 43,041.54 points, while YTD return expanded to 13.5%. Likewise, investors recorded gains to the tune of N436.1bn as market capitalization rose to an all-time high of N15.3tn. Today’s performance was propped up by sustained buying interest in market bellwethers – DANGCEM (+2.0%), GUARANTY (+4.9%) and NIGERIAN BREWERIES (+4.6%).
The equities market closed positive today due to a sustained rally, as the All Share Index gained 3.6% to settle at 41.816.11 points while YTD return expanded to 9.3%. Accordingly, market capitalization rose by N517.1bn to N14.8tn. Similar to prior sessions, performance was buoyed by a rally across sectors, with DANGCEM (+4.0%), GUARANTY (+5.1%) and ZENITH (+6.7%) driving the market for the third day in a row. Activity level also improved as volume and value traded rose 41.2% and 68.5% to 1.1bn units and N13.3bn respectively.
Bullish Sector Performance
The local bourse sustained its positive momentum on Tuesday to extend gains to the fourth consecutive session as the All Share Index rose 1.3% to close at 40,362.97 points while YTD return expanded to 5.5%. In turn, investors gained N182.7bn as market capitalization settled at N14.4tn. Today’s performance was buoyed by a broad-based rally across sectors, although DANGCEM (+1.4%), ZENITH (+4.9%) and GUARANTY (+2.2%) were the main drivers. However, activity level was mixed as volume traded inched 27.5% higher to 770.9m units while value traded dipped 51.2% to N7.9bn.
The equities market opened the week positive, extending gains from the previous week into the third consecutive trading session. All Share Index rose 2.4% on Monday to settle at 38,849.65 points while YTD return expanded to 4.2%. Consequently, market capitalisation rose by N329.7bn to settle at N14.2tn. Today’s performance was buoyed by price appreciation in DANGCEM (+5.0%), GUARANTY (+2.3%) and ZENITH (+2.5%). However, activity level was mixed as volume traded declined 19.7% to 604.5m units while value traded inched 46.7% higher to N16.1bn.
Global Equity Market Review and Outlook
Performance of global equity indices was largely bullish this week as 14 of the 16 indices under our coverage closed the first trading week of 2018 in the green. The positive performance can be attributed to sustained investor appetite for equities following the impressive return in 2017 as well as the usual “January effect”- a period in which increased buying activity is recorded in the first month of the year.
The equities market reversed the negative performance from the previous trading session as the All Share Index rose 1.3% on Thursday to settle at 38,676.12 points while YTD gain expanded to 1.1%. The rally in the market can largely be attributed to the “January effect”- a period in which there is increased buying activity at the start of the year. As a result, market capitalization grew by N174.0bn to N13.8tn. The market’s positive performance can be broadly attributed to gains in GUARANTY (+3.8%), ZENITH (+5.0%) and UBA (+4.4%).
The local bourse closed negative today despite a rally in small and mid cap stocks as sell offs in DANGCEM dragged the All Share Index 20bps lower to settle at 38,187.28 points while YTD return retreated to -0.1%. Accordingly, market capitalization decreased by N27.6bn to N13.6tn. Today’s performance can primarily be attributed to losses in DANGCEM (-3.0%). Ex- DANGCEM the benchmark index would have appreciated 95bps. Activity level softened as volume and value traded fell 137.3% and 18.8% to 589.6m units and N2.1bn units respectively.
The Nigerian Equities market began the year on a positive note as the All Share Index rose 6bps to settle 38,264.79 points while market capitalisation increased by N7.7bn to N13.6tn. Market performance was largely driven by price appreciation in ZENITH (+1.1%), ACCESS (+1.4%) and DANGSUGAR (+1.8%). However, activity level declined as volume and value traded fell 53.7% and 35.0% to 248.5m units and N1.8bn respectively.
Mixed Sector Performance
In line with the strong global risk-on sentiment which has driven outperformance of risk assets across developed, emerging and frontier markets, 2017 was a stellar year for the Nigerian Equity Market as the benchmark All Share Index posted its first positive annual return in three years (+42.3%), ranking as the 11th best performer in the world and 2nd in Africa.