Nigerian Equity Markets | 13 Dec 2016: Nigerian Bourse Sustains Bullish Sentiment… NSE ASI up 1.0%

LAGOS (Capital Markets in Africa) – The positive performance in the Nigerian equities market was extended into the fourth consecutive trading session as the All Share Index (ASI) rose 1.0% to close at 26,071.16 points. Accordingly, market value improved by N87.2bn as market capitalization rose to N9.0tn. Market performance was majorly buoyed by gains in SEPLAT (+10.3%), FORTE (+10.2%) and GUARANTY (+2.0%). Market activity also surged as volume and value traded rose 247.1% and 47.3% to close at 376.7m units and N2.4bn respectively.

Mixed Performance across Sectors
Performance across sectors was mixed today as the Oil & Gas index surged 6.3% on the back of increased buying interest in SEPLAT (+10.3%) and FORTE (+10.2%) while the Industrial Goods index gained 0.9%. The Banking index followed suit, rising 0.7% as gains in GUARANTY (+2.0 %) andACCESS (+2.0%) buoyed the sector. Contrarily, the Insurance index slid 0.7% as losses in MANSARD(-4.7%) and WAPIC (-2.0%) impacted sector performance, while the Consumer Goods index marginally lost 2bps on account of declines in 7UP (-0.8%).

Investor Sentiment Remains in the Positive Region
Investor sentiment remained positive as market breadth stayed at 1.6x (from 1.6x on Friday) with 23 stocks advancing against 14 declining stocks. The best performing stocks today were SEPLAT(+10.3%), FORTE (+10.2%) and CHAMPION (+9.7%) while AVONCROWN (-5.0 %), PORTPAINT (-4.8%), and UBN (-4.7%) declined the most.  In our view, the current trend in the stock market is largely driven by recent development in the Oil & Gas sector as oil prices hit US$55.84/b. However, we expect some profit taking by investors in trading sessions ahead.


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