Nigeria Equity Watch | 04 August 2015 : Nigeria All Share Index continues on its positive streak up 70bps

Lagos, Nigeria (Capital Markets in Africa) — Taking a cue from yesterday’s rebound, the ASI continued on its positive streak up (+70bps), to close 30,458.86pts at the end of trading. Activities of bargain hunters gave support to the index, resulting in cumulative gains of 92bps MTD, bringing YTD return to (-12.11%). Volumes were up 35%, occasioned by block trades in financial service sector stocks: GTB (62.6m shares; N1.44bn), Zenith (61.9m shares; N991m), and Mansard (189m shares; N484m). Industrial giant Dangote Cement also posted (2.6m shares; N449m), thus bringing value of transactions to an estimated $23.94m; with a total of 668m shares exchanging hands in 4,330 deals.

The banks were largely responsible for today’s bullish run. The sub-sector index garnered (+283bps) with price appreciations in Guaranty (+6.03%), Skyebank (+4.90%), and Zenith bank (+2.93%). The insurance sub-sector also notched higher (+186bps) on the back of upward ticks in Mansard and Continental Re-Insurance – (4.71%) a piece. Consumer was not left out, as the sub-sector was up (+57bps) on gains recorded in PZ (+5.26%), and Unilever (+5.00%). Reactions were somewhat negative in the industrial subsector as heavy weight Dangote Cement initially rallied intraday by (+58bps), however, succumb to sell pressure and closed flat. Wapco and Costain recorded declines of (-1.79%) and (-4.41%) respectively. The sector closed lower, shedding (-80bps).

While the bullish run thus far is a welcome development, investors are enjoined to remain cautious as this may not be sustained, with a possible bear raid in the near term.