March 7, 2017/Cordros Research
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- Nigerian equities reversed yesterday’s loss, with the All Share Index surging by 2.23% (7-month high) to 25,129.27 points. In line with our outlook, today’s gain was driven by bargain hunting across major counters.
- Today’s impressive performance significantly pared the Month-to-Date and Year-to-Date losses to 0.79% and 6.49% respectively.
- Interestingly, the Industrial Goods (+2.32%) index recorded the biggest gain, following renewed interest in DANGCEM (+4.92%). The Banking (+1.82%), Consumer Goods (+1.46%) and Oil & Gas (+0.07%) indices similarly closed higher than yesterday’s levels, on the back of rallies in GUARANTY (+3.80%), ZENITHBANK (+1.31%), GUINNESS (+4.97%), NB (+2.38%), FO (+0.73%) and TOTAL (+0.35%) respectively. However, the Insurance (-0.11%) index bucked the trend, pressured by a price decline in AIICO (-4.76%).
- Market breadth improved, albeit still negative, with 17 gainers versus 18 losers. Total volume traded jumped by 68.04% to 215.36 million shares valued at 2.60 billion and exchanged in 3,692 deals.
- We expect today’s gain to persist in tomorrow’s session.
