February 15, 2017/InvestmentOne Research
- Following gains in Consumer and Oil & Gas trackers, Nigerian equities halted the bearish trend of the last two sessions, as the benchmark NSE-ASI gained +0.39% to berth at 25,130.26pts corresponding to a market capitalisation of c.N8.69trillion.
- Buying interests in NB (+108.04pts), DANGCEM (+49.12pts) and FO (+21.99pts) drove the positive close in the index, cancelling out the decline in GUARANTY (-41.99pts), GUINNESS (-13.50pts) and ZENITHBANK (-11.88pts).
- In spite of the positive close, market breadth index (-0.04x) closed negative as 10 stocks led by FO (+10.23%) advanced compared to 14 stocks that declined, led by AIRSERVICE (-4.88%).
- Furthermore, activity levels was mixed as value turnover of c.N1.79b declined by -6% while volume of trades rose by +12% to 161m units of stocks.
- Major sectoral indexes with the exception of Banking tracker (-1.14%) saw improved performance. The Consumer tracker (+1.67%) , Oil & Gas (+1.13%) and Industrial tracker (+0.34%) closed in the green.
- Given investors’ concern regarding the weak macro backdrop, we expect the ASI to remain volatile in the near term. That said, we however advise investors to lengthen their horizons and build position in quality names.
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