Nigeria’s stocks have been rated among the world’s best-performers in the past four months. Bloomberg reported on Monday that the good performance was as a result of foreign investors. The New York-based financial software, data, and media company, said net foreign inflows to Nigerian equities totalled 337 billion naira ($940 million) last year, the first time flows have been positive since at least 2013. It said December 2017 was the best month since Bloomberg started compiling data at the beginning of 2014, with net inflows of 140 billion naira, signaling a switch in sentiment toward equities in Africa’s biggest oil producer.
The finance media company said foreign investors were heavy buyers of Nigerian shares last year. “Nigerian equities have gained in allure for international traders, thanks to the rise in Brent crude prices to around 70 dollars a barrel and an easing of dollar shortages, which are helping Africa’s largest economy recover from its worst slump in 25 years. The equities market opened the week on a positive note as the All Share Index (ASI) rose 1.2 per cent to 44,306.48 points while YTD return improved to 15.9 per cent. Accordingly, investors gained N191.0 billion in value as market capitalisation grew to N15.9 trillion. Today’s performance was largely driven by buying interest in DANGCEM (+3.0%), FBNH (+2.7%) and UBN (+4.5%) although a broad-based rally was observed across sectors. On the contrary, activity level declined as volume and value traded fell 39.3 per cent and 17.5 per cent to 573.3m units and N5.9 billion respectively.
Sector performance was largely bullish as 4 of 5 indices closed northwards. The Industrial Goods index led gainers, up 1.7 per cent owing to a rally in DANGCEM (+3.0%), WAPCO (+0.7%) and CCNN (+0.6%). The Banking index trailed, rising 0.9 per cent largely due to buying interest in DIAMOND (+9.8%), UBN (+1.0%) and UBA (+1.6%). Similarly, the Insurance and Oil & Gas indices appreciated 0.6 per cent and 0.3 per cent respectively as investors took positions in AIICO (+6.8%), WAPIC (+4.9%) and FORTE (+1.2%). On the flip side, the Consumer Goods index was the lone loser, shedding 0.7 per cent as DANGSUGAR (-4.6%) GUINNESS (-1.8%) and NIGERIAN BREWERIES (-1.2%) recorded losses.
Investor Sentiment, measured by market breadth (advance/decline ratio) softened to 3.4x from 3.6x recorded the previous Friday consequent on 40 stocks advancing relative to 12 stocks that declined. The best performing stocks were DIAMOND (+9.8%), TRANSCORP (+9.8%) and CILEASING (+9.7%) while DANGSUGAR (-4.6%), REDSTAREX (-4.5%) and LASACO (-4.0%) were the worst performers. In a related news, the NSE implemented the revised par value rule today, indicating a price floor of N0.01 for stocks traded on the stock exchange. As a result, only four stocks –ABCTRANS (-4.0%), ROYALEX (-4.0%), PRESTIGE (-4.0%) and LASACO (-4.0%) traded below the previous price floor of N0.50, closing at N0.48 each respectively. This week, we expect market performance to be largely mixed although skewed to the positive as investors position in previous decliners.
In the NASD OTC Exchange, total volume and value traded was 8,500 units and N1.3m respectively. The SDFCWAMCO was the only instrument traded today
Market Statistics Monday, 29th January 2018
Market Cap (N’bn} 15,882.6
Market Cap (US$’bn) 51.9
NSE All-Share Index 44,306.48
Daily Performance % 1.2
Week Performance % (1.3)
YTD Performance % 15.9
Daily Volume (Million) 573.3
Daily Value (N’bn) 5.9
Daily Value (US$’m) 19.2
