Nigerian Equities Market Wrap

Nigerian Equities

Market Wrap

November 15,  2017

The equities market continued to trend lower today, shedding another -0.91% on the back of sustained mean reversion in index heavyweight – Dangcem(-2.77%) and sustained apathy from the recent MSCI downgrade/deletions of some stocks. PZ which was downgraded to the frontier small caps index was the biggest loser today, dropping -8.93% to close near a 6-month low. There were ripple effects in other consumers such as Unilever(-5%) and Dangsugar(-3%). NB(-0.54%) dropped to a 6-month low but found support at N139 levels as foreign investors found the brewer too cheap to ignore. Sentiment were mixed in the banking space – MSCI deleted banks – FCMB(-1.75%) and Diamond(-1.79%) fell on panic selling, dragging Access(-1.01%) and Fidelity(-4.88%) along. On the flip side – tier Is – Guaranty(+2.26%) and Zenith(+1.14%) bounced back on foreign buying
Turnover was modest at N3.3bn ($9m) helped largely by cumulative block trades of 7.3mln NB shares ($2.8m) between foreign investors and 13.6mln cross in Zenith. NB traded its most volume in over 3months; trades in both names accounted for over half of today’s turnover. Ytd return fell to +36.25%, we expect the ASI to decline tomorrow on sustained weakness in a few large cap stocks.