April 21, 2017/Cordros Research
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Nigerian Capital Market
Equities
The Nigerian equities market closed lower this week, following a decline across majority of the sector indices. The All Share Index shed 1.26% w/w to close at 25,189.37 points. The loss was recorded, notwithstanding positive news about the (1) renewed strengthening of the Naira in the parallel market, (2) NBS guidance to possible economic growth in the first quarter, and (3) better-than-expected Q1-17 results released by big-name consumer goods companies. The All Share Index closed lower in three of the week’s four trading sessions, recording its largest loss on Tuesday (1.19%), wherein it closed at 25,207.07 points. Compared to last week, most indices shed weight, with the Banking (-1.65% w/w) index recording the largest loss, as investors sold-off FCMB (-0.99% w/w) and FIDELITYBK (-20.59% w/w). Likewise, losses recorded in the shares of 7UP (-14.25% w/w), NB (-2.35% w/w), DANGCEM (-3.05% w/w), AVONCROWN (-4.39% w/w), MANSARD (-1.32% w/w), and CUSTODYINS (-5.63% w/w) ensured that the Consumer Goods (-1.03% w/w), Industrial Goods (-1.38% w/w), and Insurance (-0.80% w/w) indices respectively shed weight. On the positive, the Oil & Gas (+0.60% w/w) index advanced, following demand for SEPLAT (+3.85% w/w) and FO (+1.14% w/w).
Market breadth was negative, with 22 gainers (13 last week) — topped by TRANSCORP (+22.78% w/w) — versus 30 losers (34 last week) — led by FIDELITYBK (-20.59% w/w). Total volume traded declined by 24.74% to 896.75 million shares (1.19 billion last week), with DIAMONDBNK, TRANSCORP, and LAWUNION accounting for 37.40% of the market volume. The value of trades also fell by 1.97% to N5.92 billion (previously N6.04 billion), with GUARANTY, ZENITHBANK, and NB accounting for 45.71% of total value.
