Nigerian Equity Markets | 07 Oct 2015: Losses Continue to the Fourth Day… NSE ASI down 0.6%

Lagos, Nigeria, Capital Markets in Africa — The All Share Index –ASI – continued into its fourth day of losses, shedding 0.6% to settle at 30,141.06pts. In like manner, market capitalisation declined N65.2bn to close at N10.4tn. The weakening in the index was against value depreciation in GUARANTY (-4.4%), FORTE OIL (-3.6%) and ZENITH (-1.8%).

Market activities were however mixed as volume waned 12.7% to 262.2m units while value rose 24.2% to settle at N3.8bn.
Sector indices were broadly negative today. The Banking sector index closed 2.2% lower to lead sector losers. This was on account of losses recorded in bellwethers such as GUARANTY (-4.4%) and ZENITH (-1.8%). The Oil & Gas sector followed, shedding 1.8% against depreciation in FORTE OIL (-3.6%) and OANDO (-2.8%). The Insurance and Consumer Goods indices trailed, down 0.7% and 0.4% respectively. Conversely, the Industrial Goods sector added 14bps consequent on 0.3% appreciation in DANGCEM.

Market breadth closed in red at 0.5x today (15 advancers/30 decliners). Top gainer’s chart was led by UNITY BANK (+8.5%), GLAXOSMITH (+5.0%) and CONTINSURE (+4.2%) while the losers’ chart was topped by VITAFOAM (-6.3%), BOC GAS (-5.0%) and UACN (-5.0%). As market reaction to the much awaited list of cabinet members continue to wane, we believe the major driver for market performance going forward will be 2015: Q3 and full year earnings outlook for each sector.

Source: Afrinvest (West Africa) Limited Research Team