March 14, 2017/InvestmentOne Research
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- The Nigerian bourse reversed the negative start to the week, as the All Share index recorded a +0.59% gain, buoyed by buying interest in Banking and Oil & Gas trackers.
- This performance was largely influenced by gains in GUARANTY (+42.84pts), ZENITHBANK (+42.05pts) and SEPLAT (+31.16pts) which offset the decline in ETI (-26.71pts), WAPCO (-25.96pts) and ACCESS (-7.58pts).
- Investors’ sentiment, as gauged by market breadth (+0.09x), equally turned positive, as 20 stocks advanced compared to 13 stocks that declined.
- AIRSERVICE (+9.62%) led the advancers while NASCON (-5.00%) topped the decliners.
- Turnover however remains less-than-inspiring printing below N1bn as investors exchanged over 227m units of stocks valued at c.N928m. Both DIAMONDBANK and FBNH were the most actively traded stocks with 57m and 32m units respectively.
- With the exception of the Industrial index, which declined by -1.8% largely due to -4.91% loss in WAPCO, other major sectoral indexes closed positive. The Oil & Gas tracker was up by +2.41% while the Banking and Consumer trackers recorded +1.41% and +0.30% gains respectively.
- In the near term, we expect the volatile trend in the index to persist. That said, we however see likelihood of a shift in FX policy regime as a potential catalyst for rebound in equities’ performance. As such, we advise investors to tread with caution and seek decent entry point as they gradually build position in quality names over extended investment horizon.
