Nigeria Equity Watch | 24 July 2015 : Nigerian index remained bearish today as recent results failed to lift the pessimistic mood

Lagos, Nigeria (Capital Markets in Africa) — The index remained bearish today as recent results failed to lift the pessimistic mood even as economic uncertainties weighed deeper(ASI -0.40%). Consumer names were the biggest drag, PZ(-3.33%), Flourmill(-2.98%) and NB(-1.56%) all dropped on increased selling pressure, NB particularly closed below a two-and-a-half year low at N126.99.

Financials ended somewhat mixed albeit the overall sentiment was still bearish, Zenith(-1.24%) slipped lower in oversold territory as offer volumes continue to grow in the market. Despite steady offshore demand in FBNH, the stock dropped -1.41% due to late sell pressure, UBA slipped -1.63% after announcing the supplementary listing of 3,298,138,756 rights shares. On the flip side, Diamond jumped +2.31% following the release of its Q2’15 numbers as PAT was flattish year-on-year helped by income from their foreign operations, Guaranty advanced +0.20% on bargain hunting activities.

Cement counters closed flat while Oil & gas major Oando(-1.45%) closed lower on weak demand. Market activity was extremely light at N1.78bln ($8.91m) with most investors remaining on the sidelines and foreigners being net sellers. Turnover for the week was however impressive at N23bln ($116m) 15% higher than the weekly average for the year of N20bln ($103m) buoyed largely by early week cross of 568mln Zenith shares. The index managed to halt its run of seven consecutive weekly decline helped by post holidays excitement in large caps (wtd +0.14%). Ytd is however at -10.29%. Activities are still quiet outside of crosses, and a lack of positive news could keep stocks moving lower in the coming week.