GTbank, Nigerian Breweries, Zenith halts 11-day bearish run… NSE ASI up 36bps

The local bourse started the trading week on a bullish note, ending an 11-day negative performance as the All Share Index rose 36bps to close at 36,947.10 points while YTD return remained in the negative territory at 3.4 per cent. Today’s positive performance was as a result of buying interest in GUARANTY (+4.5%), NIGERIAN BREWERIES (+2.9%) and ZENITH (+2.0%). Consequently, investors’ gained N47.4 billion as market capitalisation increased to N13.4 trillion. However, activity level weakened as volume and value traded dipped 39.2 per cent and 2.3 per cent to 314.5 million units and N7.0 billion respectively. The top traded stocks by volume were GUARANTY (67.2m), SOVRENINS (33.0m) and FBNH (19.6m) while GUARANTY (N2.7bn), NIGERIAN BREWERIES (N1.1bn) and NESTLE (N852.7m) were the top traded stocks by value.

Performance across sectors was mixed as 2 of 5 indices under our coverage trended northwards. The Banking index topped the gainers’ chart, up 1.6 per cent on the back of buying interest in GUARANTY (+4.5%), ZENITH (+2.0%) and ETI (+0.5%) while the Oil & Gas index rose 0.3% per cent due to gains in MOBIL (+0.9%), FORTE (+1.0%) and ETERNA (+4.9%). On the flip side, the Industrial Goods index led laggards, down 1.1 per cent following continued sell offs in WAPCO (-2.7%). The Insurance and Consumer Goods indices trailed, shedding 0.9% and 2bps respectively as a result of losses in NEM (-2.3%), WAPIC (-4.1%), INTBREW (-3.0%), PZ (-4.8%) and FLOURMILL (-3.2%).

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.0x from 0.5x recorded in the preceding session as 21 stocks advanced against 21 stocks that declined. The top performing stocks today were JAPAULOIL (+9.1%), CUSTODIAN (+4.9%) and ETERNA (+4.9%) while OANDO (-9.0%), CADBURY (-8.0%) and PRESCO (-5.0%) were the worst performing stocks. Whilst we are cautiously optimistic on the sustainability of today’s market rebound, we expect bargain hunting in large cap value stocks to continue driving positive performance in the near term.

Market Statistics Monday, 4th June 2018

Market Cap (N’bn)                                   13,383.4

Market Cap (US$’bn)                                     43.7

NSE All-Share Index                               36,947.10

Daily Performance %                                        0.4

Week Performance %                                      (5.4)

YTD Performance %                                       (3.4)

Daily Volume (Million)                                   314.4

Daily Value (N’bn)                                             7.0

Daily Value (US$’m)                                        23.0