Nigeria Market Watch | June 12th 2015: Nigerian Equities sustained its previous day’s gain, adding 19bps

Lagos, Nigeria (Capital Markets in Africa) — The Nigerian equities market sustained its previous day’s gain, adding 19bps to close at 33,621.75points. In like manner, market capitalization added N22.3bn to berth at N11.5tn. Improvement in market performance was broadly driven by bargain hunting in GUINNESS (+5.8%) and ETI (+1.3%). Market activities were however mixed as a total of 243.3m (+57.9%) units of shares worth N3.9bn (-6.3%) were traded.

Sector indices were all positive. The Banking and Insurance indices both led sector gainers with 0.5% due to increases in ETI (+1.3%) and MANSARD (1.4%) respectively. Also, rally in GUINNESS (+5.8%) and TOTAL (+3.2%), pushed the Consumer Goods and Oil & Gas indices northwards by 0.3% a piece. The Industrial Goods sector however closed flat.

Market breadth measured by advancers/decliners ratio closed flat at 1.0x as 22 stocks advanced against 23 stocks which declined. OKOMU OIL, GUINNESS and REDSTAREX dominated the best performers’ table with +8.7%, +5.8% and +4.9% returns respectively while COSTAIN (-5.0%), NAHCO (-4.9%) and DEAPCAP (-4.5%) topped the worst performers’ table. We believe today’s positive performance was largely driven by bargain hunters who want to key into cheap valuations of key banking large cap stocks. Nonetheless, we advise investors to temper their short term positions in equities given the overall lacklustre performance of the market.

On a final note, the Nigerian Bourse sustained its losing streak this week, as the benchmark index depreciated 13bps W-o-W closing for the week at 33,621.75 points. In terms of daily performance, the market closed negative for three out of five trading sessions. As a result, market capitalization reduced by N14.7bn W-o-W to settle at N11.5tn even as YTD return further fell to –3.0%. Contrarily, market activity improved W-o-W as average volume and value traded for the grew 26.9% and 3.3% to 309.8m units and N3.5bn respectively.


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