Nigerian Equity Markets | 15 Dec 2016: Banking Stocks Drive Index Higher, SE ASI up 0.6%

LAGOS (Capital Markets in Africa) – The equities market recorded gains for the 6th consecutive trading session today as the All Share Index expanded 0.6% to close at 26,559.01 points consequent on price appreciations in Banking Stocks such as UBA (+4.8%), GUARANTY (+4.4%) and ZENITH (+1.6%). Accordingly, market capitalization rose N52.1bn to settle at N9.2tn though market activity waned as volume and value traded declined 2.6% and 64.9% to close at 200.0m units and N1.5bn respectively.

Banking Sector Emerges Lone Gainer
Performance across sectors was broadly bullish as all indices under our coverage closed in the red save for the Banking index (+3.1%) which rose on account of gains in bellwethers – ETI (+5.0%), UBA(+4.8%), ZENITH (+1.6%) and GUARANTY (+4.4%). Contrary to the sentiment in prior trading sessions, the Oil & Gas index capped the sector losers, down 1.0% on the back of profit-taking in OANDO (-4.7%) and MOBIL (-5.0%) while the Consumer Goods index followed, sliding 0.3% as a  result of losses inNIGERIAN BREWERIES (-0.7%) and DANGFLOUR (-0.7%). Similarly, Insurance index dipped 0.2% due to a price decline in WAPIC (-3.8%) and MANSARD (-1.2%). The Industrial Goods index closed flat.

Investor Sentiment Weakens But Still Positive
Market breadth closed at 1.6x (from 3.2x on Wednesday), weakening investor sentiment as 21 stocks advanced against 13 which declined. The best performing stocks today were HONYFLOUR (+8.6%), ETI(+5.0%) and NEM (+4.9%) while MOBIL (-5.0%), FIDSON (-4.7%) and OANDO (-4.7%) were the worst performers. We are of the view that today’s performance was broadly propelled by sustained buy sentiment in banking stocks; albeit, we expect some profit taking in near term trading sessions ahead

Source: AFRINVEST SECURITIES LIMITED