January 22, 2018/InvestmentOne Report

The Nigerian equities market reversed bullish trends to open the first trading session of the week in the red, losing -0.40% . 

However, market breadth index ended flat today with 26 decliners against 26 gainers. 

CAVERTON (+9.91%) had the best performance while TRANSCORP (-9.20%) led the losers’ chart. 

TRANSCORP (-9.20%) was the most actively traded stock with c.3.8billion units of shares worth c.N9.3billion. 

Sector Performance

·         NSE Banking Index: Declined by -0.90%, following the profit taking in STERLNBANK (-4.80%), DIAMONDBNK (-4.76%), GUARANTY (-2.19%), FBNH (-1.08%) and ZENITHBANK (-0.76%). 

·         NSE Oil and Gas Index: Shed -0.55%, on the back of the losses in  ETERNA (-4.64%) and FO (-3.44%). 

·         NSE Consumer Goods Index: The losses in UNILEVER (-5.96%), HONYFLOUR (-4.75%) CHAMPION (-4.70%) and NESTLE (-2.00%) drove the sector down by -0.44%. 

·         NSE Industrial Index: Closed up by +0.17%, on account of the gains in BETAGLAS (+4.99%) and WAPCO (+0.02%). 

Earnings Release 

NIL.

Market Insight 

The NSE-ASI closed down today, largely driven by the profit taking across most of the sectors. Going forward, we highlight the potential for further profit taking, which may drive the market to a negative close. However, this may present a decent entry opportunity into our recommended names in anticipation of the release of full year results later this quarter. 

TOP PICKS: ACCESS, DANGCEM, GUARANTY, NB, NESTLE, UBA & ZENITHBANK