January 5, 2017/InvestmentOne Research
- The Nigerian bourse shed -1.07% at the end of today’s session, closing negative for the third day in a row, following over 4% decline in DANGCEM(-345.8pts) as well as sell-offs in both GUINNESS (-18.19pts) and STANBIC (-18.34pts).
- This outcome dwarfed the recovery in Banking tickers; GUARANTY (+48.8pts), ACCESS (+24.42pts) and FBNH (+11.90pts).Consequently, the benchmark index weakened by-282.95pts to settle at 26,212.09pts, corresponding to a market capitalisation of c.N9.02trillion.
- Market turnover weakened as investors exchanged over 137m units of stocks valued at c.N898m. This represents over -77% and -25% decline in both volume and value turnover. FIDELITYBANK and DIAMONDBANK were the most actively traded stocks with 25m and 16m units respectively.
§ In today’s session, there were 17 gainers led by UAC-PROP (+7.29%) as against 16 decliners topped by NAHCO (-9.49%). Consequently, market breadth index (0.01x) closed positive.
§ With the exception of the Banking tracker (+1.67%) which closed positive, the Industrial (-1.81%), the Oil & gas (-0.14%) and the Consumer Goods (-0.29%) closed in the red.
- Though our near term expectation is that the index would begin the year on a bearish note, given the current fragile macro outlook, we advise gradual building of positions in quality names for investors with a medium to longer term horizon.
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