17/2/2017/Cordros Research
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The Nigerian equities market closed negative for the third consecutive week, after losing in three out of five sessions.
With a bearish start to the week, the All Share Index (ASI) posted back-to-back losses, shedding 0.38% on Monday and 0.84% on Tuesday, with the latter being the largest loss recorded this week. Sentiments remain low, with the ASI reaching a nine-month low on Tuesday.
Contrary to our speculation, the local traders did not ride on the news of the successful Eurobond issue to stir a “noisy rally” on the local bourse. Although investors continued to purchase trusted names in equities, high subscription rates at the recent treasury bills and bond auctions highlight continued strong preference for risk free assets.
Overall, the ASI declined by 0.69% w/w to close at 25,164.91 points. The Consumer Goods (-4.63% w/w) index recorded the largest loss, owing to selloffs in NESTLE (-3.91% w/w) and GUINNESS (-6.23% w/w). The Banking (-0.44% w/w) and Insurance (-1.75% w/w) indices were weighed down by investors liquidating their positions in ZENITHBANK (-2.91% w/w), ACCESS (-1.73% w/w), MANSARD (-6.25% w/w) and CUSTODYINS (-2.70% w/w) respectively.
Conversely, the Industrial Goods (+0.73% w/w) and Oil & Gas (+1.63% w/w) indices were bolstered by gains in DANGCEM (+1.13% w/w), WAPCO (+O.53% w/w), TOTAL (+1.11% w/w) and SEPLAT (+1.33% w/w).
Market breadth was positive, with 27 gainers — topped by PZ (21.29% w/w) — versus 25 losers — led by VITAFOAM (-16.67% w/w). Total volume traded increased by 1.97% to 1.07 billion shares, with STACO (23.49%), ZENITHBANK (12.37%) and GUARANTY (8.29%) accounting for 44.16% of total volume. Total value traded increased by 7.19% to N8.61 billion with GUARANTY (24.92%), ZENITHBANK (23.22%) and NB (10.81%) accounting for 58.94% of total value.
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