Nigeria Market Watch | June 15th 2015: Nigerian Equities market extended bullish run to the third consecutive day gaining 0.3%

Lagos, Nigeria (Capital Markets in Africa) — Nigerian Equities market extended bullish run to the third consecutive day gaining 0.3%. Hence, the Benchmark Index settled at 33,720.6 points. This positive performance was broadly driven by price appreciations in GUINNESS (+10.1%), FORTE OIL (+2.9%) and DANGOTE CEMENT (+0.6%). Consequently, market capitalization increased by N33.8bn to berth at 11.5tn. Market activity was however mixed as volume traded declined 5.7% while value traded appreciated 28.1% to settle at 229.4m units and N4.9bn respectively.

Performance across sectors was mixed with Oil & Gas index advancing the most as a result of gains recorded in FORTE OIL (+2.9%) and OANDO (+0.6%). Similarly, the Consumer goods Index (+0.4%) and Industrial Goods Index (+0.1%) also appreciated. On the flipside, the Banking Index depreciated (-0.2%) against the backdrop of losses in ZENITH (-1.1%) and GUARANTY (-0.7%) even as the Insurance index slipped 0.2%.

Investor sentiments, though weak, remained positive as 24 stocks advanced against 21 declining stocks, hence market breadth docked at 1.1x. The gainers’ list was topped by GUINNESS (+10.1%), NEIMETH (+9.2%) and UAC PROP (+5.0%) while PZ (-8.6%), INTERNATIONAL BREWERIES (-5.0%) and OKOMU OIL (-5.0%) led the laggards’ list. While we believe some discerning investors may begin to take position ahead of half-year earnings season, we also think investors’ interest in equities may continue to drag in the absence of a clear cut direction on key economic variables from the new government. On the basis of the above, we maintain that the market may continue to trade sideways in the interim.