Nigerian Equities opens Week Bearish, as Benchmark Index Sheds 1.24%

December 18, 2017/InvestmentOne Report

Contrary to last week Friday’s bullish performance, the equities market started the week on a bearish note, as the NSE-ASI shed -1.24% in today’s trading session. 

Market breadth index closed flat as 19 stocks declined  against 19 stocks that gained. 

PRESCO (+8.81%) was the market’s best performer, while CADBURY (-5.89%) led the laggards’ chart. 

DANGCEM (-4.17%) was the most actively traded stock with c.550million units of shares worth c.N124bn. However, we highlight that majority of these traded shares were off market transactions. 

Sector Performance  

·         NSE Industrial Index: Shed -2.00%, largely driven by the loss in DANGCEM (-4.17%). 

·        NSE Consumer Goods Index: The decline in INTBREW (-5.00%) and FLOURMILL (-2.69%) drove the sector down to -0.25%. 

·        NSE Banking Index: Gained +0.29%, following the advancement in UBN (+4.90%), FBNH (+2.97%), GUARANTY (+0.50%) and UBA (+0.79%) which offset the decline in ZENITH(-0.31%) and ACCESS (-0.58%). 

·         NSE Oil and Gas Index: Closed flat. 

Earnings Release 

NIL

Market Insight 

The equities market was bearish today, largely on account of the sell-off in DANGCEM (-4.17%). Notwithstanding strong macroeconomic fundamentals, profit taking in recent times has seen prices retrace gradually presenting opportunities to take position in fundamentally sound stocks. We therefore maintain our view that the recent sell-off presents a decent entry position in our recommended names.  

TOP PICKS: ACCESS, DANGCEM, GUARANTY, NB, NESTLE, UBA & ZENITHBANK

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