NSE‘s ASI reverses, gains 0.57%

The Nigerian equities market trend which had remained negative over a prolonged trading session, reversed on Wednesday, as the All Share Index, ASI, ended on a positive, gaining +0.57 per cent to 35,605.30pts.

The market capitalization also closed higher at N12.27trillion, performance was largely driven by the gains in highly capitalized stocks such as Dangcem, Zenithbank, Nigerian Breweries (NB) and Guinness amongst others. The gains upset declines by GTB, Wapco and other highly priced stocks.

Despite the positive close to the ASI, market breadth index ended in the red as 23 stocks declined against 22 stocks that advanced.
With the exception of the Industrial sector (-0.53%) which ended in the red, all other major sectors closed positive.

The Oil & Gas (+1.32%) was the best performer while the Consumer Goods and Banking sectors inched up +0.78% and +0.10% respectively.

While the recently released GDP report, which showed Nigeria exiting recession in Q2 2017, may provide some level of support to the market, we expect the ASI to be volatile going forward. Nonetheless, we see the recent sell-off as an entry opportunity in our recommended quality names.

The gainers table was led by Guinness Nigeria, which gained increased market sentiment following 10.24 per cent or N8.12 equity price growth to close at N87.39 per share, having opened at N79.27.

Red Star, followed with 9.82 per cent or N0.43 price growth, closing at N4.81 per share, from N4.38 which opened trade for the day.
Air service placed third on activity table with 4.93 per cent or N0.03 addition in share price to close at N5.96 per share, from N5.68 that opened trade.

AG Leventis and Diamond bank closed the top five gainers table, while AG Leventis gained 4.62 per cent or N0.03 to close trade at N0.68 per share from N0.65, Diamond bank share price grew by 4.42 per cent or N0.05, closing trade at N1.18 per share, from N1.13 which opened trade.

The decliners was led by PZ with 4.98 per cent or N0.04 loss on its equity price closing at N25.94 per share, followed by Morrison which lost 4.88 per cent or N0.04 , closing at N0.78 per share, while Linkage Assurance dropped 4.48 or N0.03 , closing at N0.64 per share.

First aluminum and AIICO closed the top five decliners table with First Aluminum lost 3.57 per cent or N0.02 to close at N0.54 per share, while AIICO lost 3.51 or N0.02, closing at N0.55 per share.