Nigeria Market Watch | June 3rd 2015: Nigerian Equities Market In Search of Direction… All Share Index down 54bps

Lagos, Nigeria (Capital Markets in Africa):- The gain recorded on the Nigerian bourse yesterday was not sustained during today’s trade as the All Share Index (ASI) declined 54bps to close at 33,879.21pts. Hence, investors lost the sum N62.1bn as market capitalisation settled at N11.5tn. Today’s decline was majorly driven by declines in the Oil & Gas and Banking baskets — FORTE OIL (-5.0%) and GUARANTY (-3.7%) respectively. Market activities were however mixed as volume improved by 12.6% to close at 252.3m units, while value declined 3.3% to settle at N3.4bn.

Sector Performance was mixed. The Insurance index led the sector advancers with 0.9%return due to appreciation in MANSARD (+2.7%) and NEM (+1.2%). The Consumer and Industrial Goods indices also closed in the green, up 0.3% and 0.1% respectively. On the other hand, the Oil & Gas index declined the most after shedding 2.5% as FORTE OIL (-5.0%) and TOTAL (-3.7%) tumbled. The Banking basket also closed southwards, contracting 1.6% given declines in GUARANTY (-3.7%) and FBNH (-1.6%).

Market breadth (Advancers/decliners ratio) was negative at 0.5x as 19 stocks declined while 36 stocks advanced at the close of trade. BETAGLASS (+5.0), PORTPAINT (+4.5%) and CI LEASING (+4.3%) topped the gainer’s chart while NASCON (-5.9%), FORTE OIL (-5.0%) and RT BRISCOE (-4.9%) topped the losers’ chart. We note that the equities market has continued its search for a direction as investors look to the new administration for guidance. Consequently, we advise investors to trade cautiously while focusing on medium to long positions fundamentally sound tickers.