Markets

Budget: Expert Predicts Mixed Performance of Equities

A capital market analyst, Mr Ambrose Omordion, on Monday said that the Nigerian Stock Exchange (NSE) would be dominated by profit taking as investors await the 2017 budget implementation.

Omordion, the Chief Operating Officer, InvestData Ltd., told the News Agency of Nigeria in Lagos that the market would experience mixed performance due to profit taking.

He said that investors would likely embark on profit taking to take advantage of growth recorded by the market in the past few weeks, just as they await budget implementation and its implications to the market.

Weekly Market Review and Outlook

Photo L-R: Nike Akande, President, Lagos Chamber of Commerce & Industry (LCCI); Selloua Chakri, Head of Market Structure Strategy, MEA, Bloomberg L.P; Kemi Adeosun, Minister of Finance, Federal Republic of Nigeria; Oscar Onyema, Chief Executive Officer, The Nigerian Stock Exchange (NSE) at The NSE & Bloomberg CEO Roundtable event at the Exchange yesterday.

 

Stock Market Sustains Bullish Momentum

The Nigerian equity market benchmark index trended northwards at the close of today’s trading session owing to sustained buying interest in blue-chip Banking and Consumer Goods stocks. As such, the All Share Index (ASI) advanced 0.6% to settle at 33,797.84 points, increasing YTD return to +25.8%. Today’s performance was driven by gains in ZENITH (+4.6%), NIGERIAN BREWERIES (+2.3%), GUARANTY (+1.7%) and UNILEVER (+5.7%). Similarly, investors recovered N69.0bn as market capitalization settled at N11.7tn.

Nigerian Bourse Extends Losses to Second Session

The Nigerian equities market extended losses to the second trading session as the benchmark index slid 0.3% today to close at 33,142.18 points, further trimming YTD gain to 22.4%. Today’s performance was dragged by profit-taking in NESTLE (-2.6%), ACCESS (-3.7%), FORTE (-9.6%) and DANGCEM (-5.0%) which offset gains in WAPCO (+2.9%) and ZENITH (+1.0%). Consequently, investors lost N291.4m in value as market capitalization fell to N11.5tn. Likewise, activity level softened as volume and value traded fell 5.6% and 3.4% to 410.2m units and N5.5bn respectively.

FMDQ OTC Securities Exchange Records ₦9.49tr Transactions

FMDQ OTC Securities Exchange has reported transactions worth N9.49 trillion in fixed income and currency markets for the month of May, the News Agency of Nigeria reports.

This is contained in the company’s market turnover report.

The data showed that the turnover was higher when compared with N8.79 trillion posted in April.

A breakdown of the report indicated that Treasury Bills (TBs) transactions accounted for 40.73 per cent of the total value, while turnover in FGN bonds accounted for 5.23 per cent of the total turnover.

Nigerian Equities Market Bucks 3-day Rally

The Nigerian equities market bucked a 3-day rally in Monday’s trading session as the benchmark index slid 12bps to settle at 33,235.28 points, trimming YTD gain to 23.7%. Today’s Performance was dragged by profit-taking in NESTLE (-4.2%), INTBREW (-8.6%), FBNH (-3.6%) and TOTAL (-3.9%). Consequently, investors lost N14.3bn as market capitalization retreated to N11.5tn. However, activity level was mixed as volume traded fell 27.0% to 501.1m units while value traded rose 0.7% to N6.1bn.

Mixed Performance across Sectors

Market Sustains Gain as Oil & Gas Sector Stays Bullish

The equities market extended gains at the end of trade today as the All Share Index (ASI) rose 77bps to close at 32,937.98 points whilst YTD return advanced to 22.6%. As a result, market capitalisation added N86.9bn to settle at N11.4tn. Today’s performance was largely buoyed by Oil & Gas and Banking counters including SEPLAT (+10.1%), ACCESS (+7.3%) and ZENITH (+2.4%). Also, market activity improved as volume and value traded rose 5.8% and 18.8% to settle at 528.1m units and N4.8bn respectively.

Oil & Gas Index Leads Advancers on Forcados Reopening

Benchmark Index Rebounds on Renewed Interest

The Nigerian Bourse recouped yesterday’s loss as the All Share Index (ASI) added 1.5% to close at 32,686.72 points, whilst YTD gain expanded to 21.6%. As a result, market capitalisation improved N168.1bn to close at N11.3tn. Today’s performance was driven by a rebound in market heavyweight DANGCEM (+4.8%) and rally in Oil & Gas stocks – SEPLAT (+5.0%) and FORTE (+10.2%). However, activity level softened as volume and value traded fell 33.0% and 37.5% to settle at 499.1m units and N4.1bn respectively.

Mixed Sector Performance

Equities Halt Bullish Run on Profit Taking

The Nigerian equities market halted its 9-day bullish run today as the benchmark index slid 1.2% to close at 32,200.38 points, paring YTD return to +19.8%. Today’s performance was dragged by profit taking in market heavyweights - DANGCEM (-5.0%), MOBIL (-9.7%), UNILEVER (-4.5%) and GUARANTY (-0.3%). As a result, investors lost N130.7bn in value as market capitalization retreated to N11.1tn. Activity level was however mixed as volume traded rose 16.3% to 745.0m units while value traded dipped 15.1% to close at N6.5bn.

Mixed Performance across Sectors

Equity Market Sustains Positive Momentum

At the close of trade on Monday, the All Share Index (ASI) gained 3.9% (highest daily gain since January 2016) to sustain positive momentum into the 9th consecutive session as investors continued to show interest in large- and mid-cap stocks such as DANGCEM (+8.9%), NESTLE (+3.9%), FBNH (+10.1%), ACCESS (+5.8%) and MOBIL (+10.3%). Today’s bullish close brought the ASI to a 23-month high of 32,578.38 points, whilst YTD return further advanced to +21.2%. Accordingly, investors gained N417.2bn as market capitalization settled at N11.3tn.

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