Nigerian bourse ended Monday’s trading session near a stalemate, as the All Share Index dropped slightly by 0.04% to close at 34,121.78 points. Thus, the YTD performance currently stands at 27.56%.

A total volume of 568million units of shares, valued at N7.32billion exchanged hands in 8,928 deals. ZENITHBANK was the most traded shares by volume and valued at 79.7million units and N1.91billion.

• Market sentiment was negative, as market breadth came in at 9.2x  with 46 decliners and 5 advancers.
• The sectorial performance was bearish as Banking, Consumer Goods, Insurance, Oil & Gas were down by 4.72%, 2.07%, 2.07%, and 1.62% respectively, while the Industrial index closed as the lone gainer, up by +2.72%.

Sector performance

• NSE Banking Index: Down by -4.72%, on sell-offs in WEMABANK (-9.09%), ACCESS (-8.14%), UBA (-6.10%), and ZENITHBANK (-5.66%).
• NSE Consumer Goods Index: Fell by -2.07%, due to sustained losses in GUINNESS (-9.55%), PZ (-9.43%), and FLOURMILL (-8.43%).
• NSE Insurance Index: Dipped by -2.07%, on price decline in CUSTODIAN (-10.00%), CHIPLC (-9.38%), and LINKASSURE (-9.09%).
• NSE Oil & Gas Index: Dipped by -1.62%, as ARDOVA (-10.00%) and OANDO (-9.97%) declined in price.
• NSE Industrial Index: Up by +2.72% due to the price appreciation in BUACEMENT (+4.77%) and DANGCEM (+3.42%)

Top gainers

1. AIRTELAFRI up 5.00% to close at N500
2. BUACEMENT up 4.77% to close at N53.45
3. DANGCEM up 3.42% to close at N193.2
4. NESTLE up 1.82% to close at N1400
5. NEM up 0.78% to close at N2.6

Top Losers

1. ARDOVA down 10.00% to close at N13.5
2. WAPCO down 10.00% to close at N22.05
3. GUINNESS down 9.55% to close at N18
4. FLOURMILL down 8.47% to close at N25.4
5. STANBIC down 8.02% to close at N39.55

Outlook

Nigerian Stocks began the first trading session on a slightly bearish note, amid soaring oil prices prevailing at the U.S trading session. At the time of writing this report, Brent crude was trading above $45/barrel.

• That said, significant gains seen from NSE30 Stocks that include Nestle, Airtel, Dangote, BUACement couldn’t stop Nigerian stocks from closing slightly red, as sell-offs intensified among top brewery stocks and medium capitalized stocks.
• Nairametrics envisage cautious buying, on the sentiments that recent price action shows further market correction in the near term, however, stock traders anticipate the bullish run is still in play for the long term.

Nigerian Stocks ended the previous week cumulatively on a bearish note.

What we know: The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.

In the previous week, Nigerian Stocks had its bullish run halted arbitrarily on the bias that stock traders and investors intensified their profit, taking into account the significant amount of weak earnings recorded by Nigerian Banks.

It was unsurprising to see four Nigerian banks in the top 10 losers chart for the week, as investors fretted on such performance on the basis that Nigeria’s banking industry remains the most vibrant after Agriculture, Energy in Africa’s largest economy.

That said, In the coming week stock traders are expected to be very cautious amid recent macros showing Africa’s largest economy has dipped into a recession in Q3 as oil production dropped to a four-year low.

Abdul-Rasheed Oshoma Momoh, Head of Capital Market in TRW Stockbrokers Ltd, in a phone chat interview with Nairametrics, said Nigerian markets are presently playing out like a ping pong ball the momentum has slowed down for now.

More of consolidation now as investors buy into good stocks that have a light at the end of the tunnel. (Zenith Bank, UBA, GTBank, First Bank, Access Bank) taking into consideration he doesn’t see any new highs now till 2021.

Bottom- line: Profit taking is expected to remain at least in the near term, taking into consideration Nigeria is officially in a recession, meaning a lot needs to be done to get Africa’s biggest economy on its foot, as such development could trigger more profit-taking in spite of the positive trend playing relatively at Africa’s best-performing equity market.

Nigerian Stocks ended the week cumulatively on a bearish note.

The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.

A total turnover of 11.400 billion shares worth N35.892 billion in 39,265 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 4.509 billion shares valued at N58.733 billion that exchanged hands last week in 47,140 deals.

• The Construction/Real Estate industry (measured by volume) led the activity chart with 8.529billion shares valued at N6.055 billion traded in 438 deals; thus contributing 74.82% and16.87% to the total equity turnover volume and value respectively.
• The Financial Services Industry followed with 1.991 billion shares worth N19.933 billion in 21,725 deals. The third place was the Conglomerates Industry, with a turnover of 423.702 million shares worthN526.698 million in 1,962 deals.
• Trading in the top three equities namely UAC- Property Development Company Plc, Transnational Corporation of Nigeria Plc. and Jaiz Bank Plc. (measured by volume) accounted for 9.259 billion shares worth N6.639 billion in 1,958 deals, contributing 81.22% and 18.50%to the total equity turnover volume and value respectively.
• Twenty-one (21) equities appreciated at price during the week, lower than sixty-nine (69) equities in the previous week. Fifty-five (55) equities depreciated in price, higher than twelve(12) equities in the previous week, while eighty-five (85) equities remained unchanged, higher than eighty (80) recorded in the previous week.

Top 10 gainers W/W

1. B.O.C. GASES PLC. up 39.88% to close N 6.77
2. TRIPPLE GEE AND COMPANY PLC. up 19.57% to close N0.55
3. NEM INSURANCE PLC up 17.27% to close N2.58
4. AIICO INSURANCE PLC. up 12.22% to close N1.01
5. IKEJA HOTEL PLC up 10.00% to close N1.10
6. LINKAGE ASSURANCE PLC up 10.00% to close N0.55
7. CONOIL PLC up 9.45% to close N20.85
8. UPDC REAL ESTATE INVESTMENT TRUST up 9.21% to close N4.15
9. CORNERSTONE INSURANCE PLC up 6.90% to close N0.62
10. CHAMPION BREW. PLC. up 6.00% to close N1.06

Top 10 losers W/W

1. CORONATION INSURANCE PLC down 21.15% to close N0.41
2. OANDO PLC down 19.75% to close N3.21
3. JAPAUL OIL & MARITIME SERVICES PLC down 18.18% to close N0.27
4. TRANSNATIONAL CORPORATION OF NIGERIA down 13.04% to close N1.00
5. FBN HOLDINGS PLC down 12.12% to close N7.25
6. STERLING BANK PLC. down 11.93% to close N1.92
7. NIGERIAN AVIATION HANDLING COMPANY PLC down 11.54 % to close N2.30
8. FIDELITY BANK PLC down 11.42% to close N2.56
9. FCMB GROUP PLC. down 11.40% to close N3.03

Outlook

Nigerian Stocks had its bullish run halted arbitrarily on the bias that Stock traders and investors intensified their profit, taking into account the significant amount of weak earnings recorded by Nigerian Banks.

• It was unsurprising to see four Nigerian banks in the top 10 losers chart for the week, as investors fretted on such performance on the basis that Nigeria’s banking industry remains the most vibrant after Agriculture, Energy in Africa’s largest economy.
• Nairametrics, envisages you would seek the advice of a certified stockbroker when choosing stocks to buy, as most Nigerian stocks often offer cyclic returns.