Nigerian Stocks Open Week Positive, Gains 0.33%

October 16, 2017/InvestmentOne Research

ASI starts the week on a positive note, gaining +0.33% 

Also, market breadth index ended in the green as 24 stocks advanced compared with 15 stocks that declined.

CILEASING (+9.55%) led the gainers’ chart while LEARNAFRCA (-5.00%) was the worst performer.

Although GUARANTY (+0.24%) topped the market in terms of total value with N981m worth of shares exchanged, TRANSCORP was the most actively traded stock with c.31m units of shares.

Sector Performance  

·         NSE Banking Index: Gains in Tier 1 names; ZENITHBANK (+3.14%) and GUARANTY (+0.24%), as well as STANBIC (+2.38%), more than offset UBA (-0.11%) as the sector closed up +0.99%

·         NSE Consumer Goods Index: Worst performer (-0.31%) on the back of NB (-1.21%)

·         NSE Industrial Index: Inched up marginally (+0.09%) with support from DANGCEM (+0.21%)

·         NSE Oil & Gas Index: Shed -0.02% following OANDO (-0.17%)

Earnings Release

UBA released its Q3 2017 numbers earlier today, which showed a -35.14% q/q and -13.5% y/y decline in PBT to N20.8bn.

Market Insight

With the commencement of Q3 2017 earnings season, the equities market ended in the green today with the ASI’s performance and activity levels largely driven by the Banking sector. Despite the less than inspiring results from UBA, investor sentiment towards the Banking sector remained largely positive. In the near term, we expect market direction to be influenced by investors’ positioning for the release of Q3 2017 scorecards. Nonetheless, we see the recent profit taking as an entry opportunity in our recommended names.