Nigeria Equity Watch | 6 July 2015 : Nigerian Nigerian bourse opens the week negative … ASI dips 0.3%

Lagos, Nigeria (Capital Markets in Africa) —The Nigerian bourse opened the week negative consequent on the 0.3% loss recorded as the NSE All Share Index settled at 32,447.05pts. Today’s market performance was dragged majorly by price depreciations in bellwether stocks such as NIGERIAN BREWERIES (-1.3%), ZENITH BANK (-1.9%) and GUINNESS (-3.2%). However, market activities as measured by volume and value were positive. Volume and value advanced by 12.3% and 7.6% to close at 155.6mn and N1.7bn respectively.

Sector indices were broadly negative with the Consumer Goods index shedding the most points, down 0.8% as a result of declines in NIGERIAN BREWERIES (-1.3%) and GUINNESS (-3.2%).  Similarly, the Oil & Gas and Banking indices also closed in the red with -0.6% and -0.2% accordingly. On the flip side, the Industrial Goods Index emerged as the highest gaining stock with a 1.5% rise due to the 4.4% increase in ASHAKA CEMENT. The Insurance Index also followed with a 0.9% gain.

Market breath — ratio of advancers to decliners – contracted to berth at 0.8x as 22 stocks topped by NEIMETH (+9.8%), NEM (+7.5%) and MANSARD (+4.8%) gained while 29 stocks led by ENAMELWA, CAVERTON and DANGFLOUR shed 5.0% apiece. Whilst we note that investor sentiments for equities remain overtly bearish amidst macroeconomic concerns and policy uncertainties, we reiterate our optimism that value seeking investors will continue to position in counters that portend attractive valuations. Nonetheless, we advise investors to continue to adopt a medium to long term investment strategy even as we believe that H1:2015 earnings results will likely dictate the direction of the market in the near term.


Source: Afrinvest (West Africa) Limited Research Team

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