Expectations of positive returns on third quarter earnings report are seen driving activity at the Nigerian bourse this week as market outlook gauged marginally positive.
“In the coming week, we expect market performance to be majorly driven by investor expectations of Q3:2017 report card. Nonetheless, we advise investors to stay bullish on stocks with sound fundamentals,” say analysts at Afrinvest.
Positive expectations are despite mixed performance in the last two weeks of September. The Nigerian bourse gained marginally on three of five days last week with all –share index losing 0.1 percent week-on-week to close at 35,439.38 points.
Specifically, investors are seen betting on bellwethers in the financial services and consumers goods sectors as their results trickle in the course of the week.
At end September, market year-to-date return moderated to 31.9 percent as stock prices lost N16.8 billion as market capitalization settled at N12.2 trillion.
Review of last week trade indicates a total turnover of 1.326 billion shares worth N14.086 billion in 14,703 deals were traded last week by investors on the floor of the Nigerian Stock Exchange (NSE) in contrast to a total of 1.096 billion shares valued at N17.859 billion that exchanged hands in 16,070 deals in the previous week
The financial services industry (measured by volume) led the activity chart with 1.060 billion shares valued at N7.339 billion traded in 8,202 deals; thus contributing 79.95 percent and 52.10 percent to the total equity turnover volume and value respectively.
The Industrial Goods Industry followed with 91.351million shares worth N2.784 billion in 933 deals. The third place was occupied by consumer goods industry with a turnover of 70.187 million shares worth N3.395 billion in 2,719 deals.
Trading in the top three wquities namely – Continental Reinsurance Plc, Sterling Bank Plc and Access Bank Plc (measured by volume) accounted for 412.840 million shares worth N1.486 billion in 817 deals, contributing 31.14 percent and 10.55 percent to the total equity turnover volume and value respectively.
Drag in market performance last week was largely on account of an early declines in consumer goods counters – NIGERIAN BREWERIES (-3.5%), GUINNESS (-4.3%) and NESTLE (-0.8%). However, activity level was mixed as average volume rose 20.9 percent to 265.2 million units while value traded fell 21.1 percent to N2.8 billion.
Sector performance was equally mixed as the consumer goods index shed 1.9 percent week-on-week as investors sold off on NIGERIAN BREWERIES (-3.5%), GUINNESS (-4.3%) and NESTLE (-0.8%).
The industrial goods index trailed with 1.2 percent loss on the back of declines in WAPCO (-1.6%) and CCNN (-5.0%).
On the flipside, the banking index led with 1.2 percent gains due to bargain hunting in ZENITH (+6.1%) and GUARANTY (+1.0%). Similarly, the Insurance and oil & gas indices closed 0.6 percent and 0.5 percent higher as TOTAL (+2.7%) and MANSARD (+5.3%) respectively
Despite the negative close, investor sentiment improved as market breadth settled at 1.1x (from 0.5x recorded last Friday) consequent on 34 stocks advanced against 30 declining stocks.
The week’s top gainers were CILEASING (+34.7%), FIDSON (+17.3%) and UNITY (+15.4%) while the top losers were AGLEVENT (-16.9%), MORISON (-12.0%) and UAC-PROP (-9.3%).