Profit taking halts 2-day positive trend… NSE ASI down 0.3% 

The Nigerian Bourse halted a 2-day gaining trend today as the NSE All Share Index (ASI) was dragged 0.3% southwards to 39,031.72 points while YTD return reduced to 2.1%. Profit taking in NIGERIAN BREWERIES (-1.8%), ZENITH (-1.7%) and FBNH (-2.7%) pulled the index lower. Consequently, investors lost N32.7bn as market capitalization fell to N14.2tn. Activity level was mixed as volume traded improved  33.7% to 456.5m units while value traded declined 20.4% to N4.1bn. The most traded stocks by volume were UBA (90.6m), UCAP (78.7m) and AFRIPRUD (72.1m) while UBA (N998.2m), GUARANTY (N329.5m) and AFRIPRUD (N312.6m) were the top traded stocks by value.

Performance across sectors was mixed as 3 of 5 indices under our coverage trended southwards. The Consumer Goods index led laggards, down 0.6%, as investors took profit in NIGERIAN BREWERIES (-1.8%), DANGSUGAR (-2.6%) and DANGFLOUR (-0.9%). Likewise, the Banking and Insurance indices shed 0.5% and 0.4% respectively due to losses in ZENITH (-1.7%), UBA (-1.4%), DIAMOND (-5.0%), NEM (-3.1%), AIICO (-4.6%) and WAPIC (-2.0%). On the flipside, the Industrial Goods and Oil & Gas indices closed in the green, up 0.2% and 1bp, following price appreciation in CCNN (+3.8%) and ETERNA (+0.5%) respectively.

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.9x from 1.3x in the previous session as 20 stocks advanced relative to 22 decliners. Today’s top performers were JAPAULOIL (+5.9%), UAC-PROP (+5.0%) and PRESTIGE (+4.9%) while DIAMOND (-5.0%), AIICO (-4.6%) and UNITY (-4.3%) declined the most. As the gaining streak was halted in today’s trading session, we expect to see increased profit taking tomorrow as investors free up cash for the holiday season. Nevertheless, we believe market return for the week will be positive given the gains recorded earlier in the week.

Market Statistics Wednesday, 13th June 2018

Market Cap (N’bn)                            14,155.5

Market Cap (US$’bn)                              46.2

NSE All-Share Index                       39,031.72

Daily Performance %                              (0.3)

Week Performance %                               1.6

YTD Performance %                                 2.1

Daily Volume (Million)                           456.5

Daily Value (N’bn)                                    4.1

Daily Value (US$’m)                               13.5