Lagos, Nigeria, Capital Markets in Africa — For the second consecutive trading session running, the NSE All Share Index (ASI) closed 0.2% higher today to settle at 30,231.16pts. Equally, market capitalisation added N2.7bn to close at N10.4tn. This is attributable to buying interests recorded in ZENITH BANK (+3.1%), FORTE OIL (+3.9%) and GUARANTY (+1.4%). Market activities as measured by volume and value were mixed as volume declined by 28.4% while value of transactions increased by 10.8%. At the close of market, investors exchanged 134.6m units of shares valued at N1.5bn.

It was a mixed close for sector indices today with the banking, insurance and oil & gas indices trading within the positive territory while the consumer and industrial goods sectors closed negative. The banking index led the pack of sector gainers with 0.9% attributable to increases in ZENITH BANK (+3.1%) and GUARANTY (+1.4%). Similarly, there was a 0.7% rise in the insurance index majorly attributable to price appreciations in MANSARD (+2.1%) and CUSTODIAN (+1.7%). In the same manner, the oil & gas index improved 14bps. However, against depreciations in NIGERIAN BREWERIES (-1.4%) and CUTIX (-5.0%), the consumer and industrial goods sectors waned 0.3% and 4bps respectively.

Market breadth, measured by the ratio of advancers to decliners stayed positive at 1.7x today as 25 stocks advanced against 15 declining stocks. FCMB, EVANSMED and NAHCO topped the gainers’ list with 6.2%, 5.0% and 4.9% respectively while CUTIX (-5.0%), HONEYFLOUR (-4.7%) and LEARN AFRICA (-4.3%) led the losers’ chart.  Whilst we note the recent activities of lurking bargain hunters in the market, we are also of the view that the gains on the bourse may be short-lived in the near term though we expect Q3:2015 results to continue to drive market performance in the interim. 

Source: Afrinvest (West Africa) Limited Research Team