Nigerian Equities Opens Week Negative as Benchmark Index Down 0.37%

L – R: Shows Mr. Abimbola Ogunbajo, First Vice President, NSE; Alhaji Aliko Dangote, ex-officio, NSE; Oscar Onyema, CEO, NSE; Mr. Aigboje Aig-Imoukhuede, President, NSE and Mojisola Adeola, Council Secretary, NSE at the Annual General Meeting (AGM) on Monday in Lagos.

September 25, 2017/InvestmentOne Research

The equities market closed the first trading session of the week negative, -0.37%.

Despite the ASI ending in the red, market breadth index closed positive as 19 stocks advanced compared to 17 stocks that declined.

FIDSON (+5.00%) was the best performer while JAIZBANK (-4.29%) led the losers’ chart.

Although MEYER was the most actively traded stock with c.20m units of shares, NESTLE (-0.41%) topped the value chart with N791m worth of shares exchanged.

Sector Performance  

·         NSE Banking Index: Some profit taking on Tier 1 names that gained on Friday; GUARANTY (-0.25%), UBA (-3.01%), FBNH (-0.36%) and ZENITHBANK (-0.18%) drove the index to end in the red (-0.48%)

·         NSE Consumer Goods Index: Ended down -0.81% on the back of the declines in NESTLE (-0.41%), NB (-1.76%) and GUINNESS (-0.64%), which more than outweighed the gains in DANGFLOUR (+2.42%) and DANGSUGAR (+0.73%)

·         NSE Industrial Index: Following the sell-off in WAPCO (-2.87%), the index lost -1.13%

·         NSE Oil & Gas Index: Only sector to end positive (+0.30%) driven by the gains in TOTAL (+2.67%)

Earnings Release

NIL

Market Insight

Despite the relatively quiet trading session (c.N1.4bn worth of stocks exchanged), today’s market performance was largely driven by the declines in bellwether stocks as market breadth index continued to close positive. With this said, while the ASI has traded sideways in the past few weeks, we believe the direction going forward may be influenced by investors positioning ahead of Q3 2017 earnings season. Nonetheless, we are of the view that the recent sell-off represents an entry opportunity in our recommended quality names.

TOP PICKS: ACCESS, DANGCEM, GUARANTY, NB, NESTLE, UBA & ZENITH BANK

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