FBN Securities Nigerian Market Wrap: 29 January 2015 |

The bears had the upper hand in the market today with increased foreign selling amid growing political and economic uncertainties. Financials were the worst hit as offers outstripped demand 3:1 in most names. Zenith(-4.99%) and Diamond(-4.81%) took a beating and both closed on net offer, the former having over 2mln shares at the day’s low. Diamond closed at N3.76, 35% off its 2014 rights price of N5.80. Guaranty dipped -4.31% intraday but subsequent value buying helped cut losses to -2.20%, there was decent support at N20 levels. Stanbic fell -3.70% on weak demand while Skye dropped -2.38% to close at a nine year low.

Consumer names were also skewed to the sell side, NB(-1.25%) and Nestle(-1.82%) were a major drag. PZ announced its Q2’15 results today, half year PBT and PAT declined by -36% and 37% respectively from last year following increased operating expenses. The stock fell -7.41% intraday however late aggressive buying towards the close erased and lifted it by +0.33%. The negative sentiment however spiraled to Flour mill (-5%). The industrial index was the sole gainer as decent buying in Wapco(+1.79%) and Ashakacem(+4.98%) offset weakness in Dangote Cement Nigeria (-0.32%). Other notable gainers were Dangsugar(+6.67%) which extended rally for the fifth consecutive session on local buying and FCMB(+3.96%) which was also lifted aggressively at the close. ETI(+1.25%) enjoyed decent patronage from offshore investors.

In summary, the market lost -0.89% on a big turnover of N11.9bln ($62m). As in recent sessions, block trades were rife in the market. There was another 400mln block trade in Oando at N18.00 ($37m) between two local firms, Max Air Limited bought while Ocean and Oil Development Partners sold. There was also block trades of 62mln ETI shares ($5.2m), 20mln cross in Guaranty ($2.17m) both by internationals and 49.5mln cross in Dangsugar ($1.5m)

Year-to-date (Ytd) loss increased to -14.47%, we expect the market direction to remain mixed in coming sessions.

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