Market Review and Outlook

Photo L-R: Clifford Akpolo, Digital Marketing Manager, The Nigerian Stock Exchange (NSE); Pai Gamde, Ag. Head, Corporate Services Division, NSE; Simisola Ogunleye,  a Celebrity at 2017 NSE Corporate Challenge; Olumide Orojimi, Head, Corporate Communications, NSE and Boluwatiwi Omidiji, CSR Analyst, NSE at the Closing Gong Ceremony in commemoration of 2017 NSE Corporate Challenge at Exchange.


Equities Rebound from 4-day Losing Streak

The Nigerian bourse rebounded from a 4-day losing streak as the All Share Index (ASI) rose 0.2% to close at 32,354.78 points while market capitalization added N18.1bn to settle at N11.2tn. Consequently, YTD gain of the benchmark index improved to 20.4%. Today’s positive performance was largely driven by DANGCEM (+1.9%); ex- Dangcem, ASI would have lost 0.2%. Activity level however was mixed as volume traded fell 45.9% to 168.5m units while value traded rose 21.9% to N3.6bn.

Positive Performance across Sectors

Ashaka Cement withdraws from NSE

Ashaka Cement Plc has voluntarily delisted from the Nigerian Stock Exchange (NSE) for violation of the exchange free float deficiency provision of 20 per cent.

The company announced its voluntary withdrawal in a statement posted on NSE website by the company’s directors.

“The Board of Directors of Ashaka Cement Plc has opted for a voluntarily delisting of the company from the NSE in violation of the Exchange’s Free Float Deficiency provision of 20 per cent,’’ the statement read in part.

Stock Market Extends Losses

The equities market extended the negative trend which has persisted since the start of the week to today’s session. At the close of trading, the All Share Index (ASI) lost 0.3% to close at 32,302.32 points whilst YTD return retreated to +20.2%. Consequently, N36.7bn was lost in value as market capitalization settled at N11.1tn. Today’s performance was attributed to declines in ETI (-4.0%), UNILEVER (-4.9%) and FLOURMILL (-9.7%). Nonetheless, activity level improved as volume and value of transactions rose 51.0% and 74.8% to close at 311.4m units and N3.0bn respectively.

Equities Remain Bearish as Banking Stocks Decline

The negative trend in the equities market was extended into the third consecutive trading day as the All Share Index (ASI) fell 1.1% to close at 32,410.20 points whilst YTD gain further moderated to 20.6%. Accordingly, market capitalization declined by N162.2bn to settle at N11.2tn. The poor performance was majorly attributable to price decline in NIGERIAN BREWERIES (-1.9%) as well as banking counters - UBA (-5.8%), GUARANTY (-1.3%), ETI (-4.9%), STANBIC (-3.0%), FBNH (-3.4%) and ACCESS (-2.3%).

Bargain Hunting Triggers Market Rebound

After 3 consecutive days of decline, the benchmark index opened the week positive as investors hunted for bargains. Good deals were seen in bellwether Banking, Industrial and Consumer Goods companies such as DANGCEM (+2.3%), GUARANTY (+4.4%), UBA (+8.2%), NIGERIAN BREWERIES (+1.7%)  and NESTLE (+1.1%). Consequently, the All Share Index added 1.7% to settle at 32,657.30 points while YTD return advanced to 21.5%. Accordingly, investors recovered N185.1bn in value as market capitalization improved to N11.3tn.

Review and Outlook of Global, Nigeria Markets

Global Market Review and Outlook
In global markets this week, oil prices experienced a steep drop as doubts over OPEC’s ability to stabilize an increasingly oversupplied oil market amidst faltering demand growth amongst key Asian importers, weighed on sentiment. This resulted in a 4.3% W-o-W decline in Brent crude to US $45.2/b as of writing on Friday. Nevertheless, performance across the Global equity markets under our watch was largely positive as most of the benchmark indices appreciated.

Bearish Sentiment Hits Nigerian Bourse

Against the backdrop of the renewed pressure on oil prices, the Nigerian Bourse extended losses yesterday as the All Share Index declined 1.6% at the close of trade to settle at 32,928.44 points, paring YTD return of the benchmark index to 22.5%. The bearish performance was broadly due to losses in bellwether Consumer Goods and Banking stocks including NIGERIAN BREWERIES (-4.8%), ZENITH (-3.6%), ETI (-8.5%) and GUARANTY (-1.7%). Consequently, market capitalization declined N190.0bn to close at N11.4tn.

Equities Market Extends Bullish Run

The Nigerian equities market extended gains to the fourth consecutive session as the benchmark index climbed 0.7% to close at 34,375.60 points, further buoying YTD and MTD returns to 27.9% and 16.5% respectively. Today’s performance was primarily driven by price appreciation in DANGCEM (+1.9%), NIGERIAN BREWERIES (+1.8%), INTBREW (+8.1%) and JBERGER (+10.2%) which more than offset losses in ZENITH (-1.9%) and ACCESS (-2.1%). Thus, investors accumulated N83.3bn as market capitalisation rose to N11.9tn.