Nigeria Market Watch | June 19th 2015: Nigerian Equities market extended losses to the fourth consecutive session, declining 0.6%

Lagos, Nigeria (Capital Markets in Africa) — The Nigerian Equities market extended losses to the fourth consecutive session, declining 0.6% to close at 33,257.90pts. Similarly, market capitalization shed N68.5bn to settle at N11.4tn. Poor performance in the market was consequent on value depreciation in Banking and Consumer Goods bellwethers — FBNH (-4.8%) and NIGERIAN BREWERIES (-1.3%). On the contrary, market activity measured by volume and value traded rose 91.6% to 390.5m units and 13.6% to N4.9bn respectively.

All sector indices closed southwards, with the Consumer Goods index leading the pack with a 1.2% decline as NIGERIAN BREWERIES (-1.3%) and GUINNESS (-5.3%) shed points. The Insurance and Banking indices also moderated 0.5% and 0.4% accordingly, consequent on drops recorded in NEM INSURANCE (-5.0%) and FBNH (-4.8%). The Oil & Gas and Industrial Goods indices followed with 6bps apiece.

Market breadth measured by advancers/decliners ratio eased to 0.4x as 17 stocks led by RTBRISCOE (+5.0%), CCNN (+4.9%) andLIVESTOCK (+3.2%) advanced against 39 declining stocks. DNMEYER (-8.4%), PRESCO (-7.2%) and GUINNESS (-5.3%) championed the decliners’ table. In our view, investors continue to maintain a medium to long term position in equities as the market continue to ramble.