August 30, 2018

By InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market on Thursday closed the trading session in red, as  the all-share index (ASI) shed 0.77 percent, driven by losses on blue-chip stocks.

InvestmentOne reports that market breadth index was negative with 11 gainers compared to 27 stocks that declined.

According to the report insurer, Nem Insurance Plc with a gain of 10.00 percent emerged the topmost gainer, while peer, Axa Mansard Insurance Plc with a loss of -9.80 percent led the losers’ chart.

Africa’s global lender, the United Bank for Africa Plc with a gain of +0.62 percent was the most actively traded with 57 million units of shares worth about N452 million, coming on the heels of the double digit growth in the half year 2018 gross earnings of the bank, as it recorded a 16 percent year-on-year (y/y) rise in top-line to N258 billion, compared with N223 billion recorded in the same period of 2017.

In terms of sector performance, the Nigerian Stock Exchange (NSE), Industrial index shed 2.30 percent due to the losses in the shares of cement manufacturers, Lafarge  Cement Wapco Nigeria Plc and Dangote Cement Plc both declined by -7.06 percent and -0.44 percent apiece.

InvestmentOne reports that the NSE Banking index declined by 1.77 percent largely driven by the sell-offs in the shares of lenders, Diamond Bank Plc and First City Monument Bank Limited both depreciated -9.35 percent and -4.76 percent; while, Access Bank Plc and Guaranty Trust Bank Plc both lost -3.16 percent and -2.69 percent each.

In the same vein, the NSE Oil & Gas index closed down by 0.80 percent, following the declines in the shares of oil marketing majors, Forte Oil Plc and Oando Plc depreciated -7.83 percent and -2.78 percent respectively.

On the positive side, the NSE Consumer Goods index advanced by 0.20 percent, on account of the gains in the shares of brewing giant, Guinness Nigeria Plc and Honeywell Flour Mills Plc; both gained +5.56 percent and +1.25 percent each; while  and Nascon Allied Industries Plc appreciated by +0.25 percent. 

Guinness Nigeria Plc ( year end June) released its fourth quarter (Q4) 2018 results late Wednesday which showed a 59.97 percent y/y and a 63.63 percent y/y decline in profit before tax and profit after to N2.05 billion and 1.63 billion in Q4 2018.

“The equities market closed down today following the losses in major sectors. Despite the sell-off in the equities market in recent times, we believe this presents decent entry opportunities in our quality names,” the InvestmentOne report affirmed.