Nigerian Equity Markets | 11 Sep 2015: Nigerian Bourse recovers after 2 consecutive days in red ….

Lagos, Nigeria, Capital Markets in Africa — The Nigerian Bourse showed some signs of recovery today after 2 consecutive days of losses as the Benchmark Index — All Share Index- gained 97 bps to close trading for the week at 29, 689.08points. The improvement in performance today was driven GUINNESS (+10.2%), NIGERIAN BREWERIES (+3.0%) and DANGCEM (+1.8%) as investors gained a total of N94.8bn to bring Market capitalization N10.2tn. Activity level today however weakened as total volume and value traded declined 34.3% and 23.5% , to settle at 201.2m units and N2.4bn respectively.

Performance across sectors was broadly positive as all indices, save for the Oil &Gas Index which depreciated 2.5% on the back of losses in FORTE (-5.0%) and TOTAL (-4.6%), closed in the green. The consumer goods index gained the most today (+2.1%) consequent on price appreciation in GUINNESS (+10.2%) and NIGERIAN BREWERIES (+3.0%). The Banking and Industrial goods indices improved 1.2% and 0.6% respectively, while the Insurance index closed flat.

Sentiments towards the Nigerian Bourse improved today as market breadth (advancers/ decliners’ ratio) settled at 1.3x as a result of 23 stocks that advanced against 18 declining stocks. The Best performing stocks today were GUINNESS (+10.2%), UBA (+8.5%) and TRANSCORP (+5.0%) while the biggest laggards were VONO (-8.2%), FORTE (-5.0%) and STANBIC (-5.0%). The improvement in performance shows that the frantic sell offs that were observed in the market following the JP Morgan announcement has been stemmed however, we maintain our stance on cautious trading as investors await some form of policy direction form the polity.

Source: Afrinvest (West Africa) Limited Research Team