Nigerian Equity Markets | 02 Nov 2015: Negative Trading Persists…. ASI down 18bps

Lagos, Nigeria, Capital Markets in Africa — The Nigerian equity market benchmark index went further below the 30,000pts psychological mark after dipping 18bps today to close at 29,136.85pts. This decline was driven by the sell-offs recorded in DANGOTE CEMENT (-1.0%), UNILEVER (-5.0%) and FBN Holdings (-1.2%). In a similar manner, market capitalization fell N105.3bn to settle at N10.0tn. Activity level measured by volume and value traded however showed mixed performances as volume advanced 49.9% to 308.1m units while value declined 12.1% N3.0tn. 

In the same manner as the last trading session, all sectors closed in red save for the Banking Index which added 1.0% on account of increases in GUARANTY (+2.2%) and ZENITH (+1.7%). On the contrary, the Insurance basket led sector decliners with 1.1% decline consequent on the loss in MANSARD    (-4.5%). Equally, the Oil & Gas sector trailed, closing 0.6% lower following the continuous sell pressure on OANDO (-0.3%). The Consumer and Industrial baskets also shed 0.4% and 0.3% respectively – DANGOTE CEMENT (-1.0%) and UNILEVER (-5.0%).   

Market breadth stayed negative today at 0.4x as 11 stocks advanced against 27 declining stocks. Top gainers at the end of today’s trading session include AIICO (+4.7%), FLOURMILLS (+4.2%) and PZ (+4.1%), while TRANS EXPRESS (-7.9%), LIVESTOCK (-5.0%) and UNILEVER (-5.0%) topped the losers chart. We believe market performance remained negative given the current unimpressive earnings releases and regulatory sanctions on some key stocks in the market. Given the prolonged negative trend in the market in recent sessions, we imagine the likelihood of an uptrend in the market in the near term as bargain hunters position for short term gains. 

Source: Afrinvest (West Africa) Limited Research Team