Market Remains Bullish on Sustained Investor Sentiment

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The Nigerian bourse sustained its bullish performance as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose further by 0.49 per cent to close higher at 37,120.28. Market capitalisation added N62.5 billion to close at N12.847 trillion. All other indices finished higher during the week with the exception of the NSE Insurance and NSE Consumer Goods Indices that depreciated by 1.09 per cent and 0.07 per cent respectively.

According to analysts at Cordros Capital Limited, with the third quarter earnings season now over, market activities will be driven by outlook for fourth quarter and full year expectations.
“Whilst noting possibility of momentum profit-taking, given the two consecutive weeks of gains, we believe market fundamentals remain strong, amid improving macroeconomic conditions,” they said.

Daily Market Performance
The market began the week on a weak note as the index fell marginally by 0.02 per cent to close at 36,930.83. The depreciation recorded in the share prices of Total Nigeria, Zenith Bank, Nigerian Breweries, United Bank for Africa and Flour Mills of Nigeria Plc was mainly responsible for the decline. Similarly, the total value of stocks traded fell to N2.90 billion invested in 466.52 million shares in 4,274 deals.

The three most actively traded sectors were: Financial Services (398.25 million shares), Conglomerates (29.79 million shares), and Consumer Goods (23.60 million shares), while the three most actively traded sectors stocks were: Jaiz Bank (226.77 million shares), FBN Holdings (43.47 million shares) and Transcorp (27.23 million shares).

Performance across sectors was largely bearish as three of five sectoral indices closed in the red, one closed in the green and the other flat. The NSE Banking Index emerged the lone gainer following price appreciation in GTBank (+1.3 per cent). The negative performers were led by the NSE Insurance Index which shed 0.8 per cent on account of sell-offs in AXA Mansard (-3.2 per cent) and NEM (-3.7 per cent). The NSE Oil & Gas Index trailed, down 0.7 per cent as a result of due to a downtick in Total, while profit taking in International Breweries NTBREW (-3.5 per cent) also dragged the NSE Consumer Goods Index 0.2 per cent.

The market rebounded on Tuesday with the benchmark index appreciating by 0.22 per cent to close at 37,013.57. The performance was bolstered by gains recorded in the share prices of FBN Holdings, Zenith Bank, GTBank, UBA, and Dangote Cement.
A further analysis of the market performance showed that two sectors appreciated, while two declined. The NSE Industrial Goods Index and NSE Banking Index recorded the highest gain of 0.5 per cent apiece.

Conversely, the NSE Consumer Goods Index led losers, down 0.7 per cent, trailed by Oil & Gas Index that shed 0.2 per cent.
The positive momentum was sustained on Wednesday leading to a rise of 0.34 per cent in the index to close at 37,138.97 the performance was buoyed by gains in Dangote Cement (+0.9 per cent), International Breweries (+10.2 per cent) and FBN Holdings (+1.7 per cent). However, activity level softened as volume and value traded fell 36.6 per cent and 37.8 per cent to close at 193.5 million units and N1.8 billion respectively.

In terms of sectoral performance, two trended northwards, while two closed in the red. The NSE Industrial Goods Index emerged the top gainer, up 0.5 per cent followed by the NSE Consumer Goods Index that added 0.4 per cent.
On the negative side, the NSE Banking Index shed 0.2 per cent, the NSE Insurance Index fell by 0.1 per cent.

The market recorded bearish performance yesterday following profit taking that set in after two days of growth. The index fell by 0.24 per cent to close at 37,051.54, while market capitalisation shed N30.3 billion.
However, the negative close stemmed mostly from profit taking in Dangote Cement Plc, which is the highest capitalised stock in the market. But for the decline of 0.9 per cent recorded by Dangote Cement, the market would have closed 0.04 per cent higher.

In all, 22 stocks depreciated while 21 appreciated. Apart from Dangote Cement, Nigerian Breweries Plc, Guinness Nigeria Plc and Zenith Bank Plc also recorded declines.
On the positive side, Caverton Offshore Support Group led the price gainers with 9.4 per cent trailed by International Breweries Plc with 8.3 per cent. 11 Plc garnered 7.8 per cent, while May & Baker Nigeria Plc appreciated by 5.0 per cent.
Caverton and May & Baker recorded improved results for the nine months ended September 30, 2017. Caverton reported a revenue of N14.834 billion in 2017, up from N14.448 billion in 2016, while profit after tax of N1.193 billion in 2017, as against a loss of N1.041 billion in 2016.

Market Turnover
By the end of the week, investors traded 1.316 billion shares worth N13.784 billion in 19,169 deals compared with a total of 1.363 billion shares valued at N17.714 billion that exchanged hands the previous week in 21,891 deals.
The Financial Services Industry remained the most active, leading the activity chart with 1.035 billion shares valued at N6.727 billion traded in 10,471 deals; thus contributing 78.63 per cent and 48.80 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 130.516 million shares worth N4.959 billion in 4,490 deals. The third place was occupied by Conglomerates Industry with a turnover of 58.924 million shares worth N179.816 million in 890 deals.

Trading in the top three equities namely – Jaiz Bank Plc, Diamond Bank Plc and FBN Holdings Plc accounted for 551.561 million shares worth N1.438 billion in 3,003 deals, contributing 41.91 per cent and 10.43 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 1,210 units of Exchange Traded Products (ETPs) valued at N13,467.70 executed in two deals compared with a total of 1,156,439 units valued at N6.404 million transacted two weeks ago in 13 deals.
A total of 2,806 units of Federal Government Bonds valued at N2.623 million were traded last week in 16 deals, compared with a total of 2,775 units valued at N2.770 million transacted last week in four deals.

Price Gainers and Losers
Meanwhile, the price movement chart displayed 30 gainers last week, lower than 37 of the previous week, while 29 equities depreciated in price, same as 29 equities of the previous week.
Caverton Offshore Support Group Plc led the price gainers with 30.2 per cent, trailed by Cadbury Nigeria Plc with 22.0 per cent. Nigerian Aviation Handling Company Plc chalked up 12.2 per cent, just as Forte Oil Plc garnered 10.2 per cent. University Press Plc went up 9.6 per cent.

Other top price gainers included: Diamond Bank Plc (9.4 per cent); Learn Africa Plc (8.0 per cent); International Breweries Plc (6.7 per cent); Livestock Feeds Plc and May & Baker Nigeria Plc (5.9 per cent apiece).
Conversely, Champion Breweries Plc led the price losers with 14.3 per cent, trailed by Linkage Assurance Plc that shed 12.8 per cent. Law Union and Rock Insurance Plc depreciated by 9.8 per cent, just as Morison Industries Plc closed 5.0 per cent lower.

Other top price losers included: Neimeth International Pharmaceuticals Plc(4.8 per cent); NASCON Allied Industries Plc (4.6 per cent) Cement Company of Northern Nigeria Plc (4.4 per cent); Newrest ASL Nigeria Plc (4.3 per cent); Flour Mills of Nigeria Plc (4. 1 per cent) and Redstar Express Plc (3.6 per cent).