DANGCEM drags Nigerian Bourse… NSE ASI down

At the close of trade today, the benchmark index dipped 91bps to settle at 36,584.44 points whilst YTD gain moderated to 36.1%. As a result, market capitalisation contracted N115.9 billion to settle at N12.6tn. Today’s negative close was largely attributed to losses in DANGECEM (-4.2%) which more than offset gains in GUARANTY (+3.0%) NIGERIAN BREWERIES (+1.4%) and ETI (+2.3%). Ex-DANGCEM, market would have gained 0.5 per cent. However, activity level improved as volume and value traded surged 55.7% and 30.5 per cent to settle at 368.4 million units and N6.3 billion respectively.

Mixed sector performance
Performance across sectors was mixed as 2 of 5 indices closed negative. The Banking index advanced the most, up 0.8 per cent due to price appreciation in GUARANTY (+3.0%) and ETI (+2.3%). Likewise, the Consumer Goods index expanded 0.7% due to renewed interest in NIGERIAN BREWERIES (+1.4%) and FLOURMILLS (+8.7%). On the flip side, the Industrial Goods index declined the most, down 2.3 per cent due to losses in DANGCEM (-4.2%) and WAPCO (-0.9%). In the same vein, the Insurance index slid 0.9% on account of price depreciation in MANSARD (-4.9%). The Oil & Gas index closed the day flat.

Market breadth moderates but still positive
Investor sentiment as measured by market breadth (advancers/decliners’ ratio) declined to 1.6x (from 2.1x recorded last week Friday). The best performing stocks today were FLOURMILL (+8.7%), TRANSCORP (+6.0%) and HONYFLOUR (+5.0%) while the worst performing stocks were VITAFOAM (-5.0%), MANSARD (-4.9%) and SCOA (-4.7%). Whilst today’s market performance is largely attributed to losses in DANGCEM, the positive market breadth suggests investors are sourcing for bargain in stocks that had previously declined. Hence, we envisage an uptick in market performance in sessions ahead.

NASD OTC exchange market activities
In the NASD OTC exchange, five counters traded with total volume and value of transactions closing at 1.1m units and N7.7m respectively. WAMCO (+5.8%) closed in the green while AFRILAND (-9.2%) and CSCS (-1.5%) closed in the red. AG MORTGAGE BANK and NDEP closed the day flat.

Market Statistics Monday, 21st August 2017
Market Cap (N’bn)                                   12,609.7
Market Cap (US$’bn)                                     41.3
NSE All-Share Index                               36,584.44
Daily Performance %                                       (0.9)
Week Performance %                                      (3.6)
YTD Performance %                                        36.1
Daily Volume (Million)                                    368.4
Daily Value (N’bn)                                              6.3
Daily Value (US$’m)                                         20.5