November 1, 2017/InvestmentOne Research

For the third consecutive trading session, the Nigerian equities market closed in the green, gaining +0.56%. 

FBNH (+5.00%) was the market’s best performer while AIRSERVICE (-4.95%) was the worst performer. 

Market breadth index closed positive as 23 stocks gained against 21 stocks that declined. 

FBNH (+5.00%) led the market in terms of volume with a total of c.40m units of shares while MOBIL (+3.87%) led the value chart with  N1.53bn worth of shares traded. 

Sector Performance  

·         NSE Banking Index: Gained +0.18% following the buy interest in FBNH (+5.00%), ZENITHBANK (+1.49%) and FIDELITYBK (+1.32%). 

·         NSE Consumer Goods Index: Recorded a marginal +0.01% uptick supported by the gains in DANGSUGAR (+1.47%) and FLOURMILL (+1.94%)  which more than outweighed the decline in NESTLE (-0.16%) and PZ (-1.70%). 

·         NSE Oil & Gas Index: Advanced by +0.38% following the gains in MOBIL (+3.87%). 

·         NSE Industrial Index: Gains in DANGCEM (+1.56%) pushed the index up  +0.87%. 

Earnings Release 

·         Presco Plc. released its Q3 2017 numbers today which showed a -86.3% q/q decline and a -93.7% y/y decline in PBT to N351mn. 

·         Oando Plc. released its Q3 2017 numbers which showed a profit before tax of N10.33bn against loss before tax of –N192.8mn in Q2 2017. 

·         International Breweries Plc. released its Q2 2018 (year end March) earnings which showed a  loss before tax of –N1.22bn  against a profit before tax of N1.49bn in Q1 2018. 

Market Insight 

The ASI closed positive today as investors’ sentiment was relatively better than yesterday. The market was largely driven by the gains in Dangcem. Going forwards, we may see investors take profit on recent gains. Nonetheless, this may present an entry opportunity in our recommended names.