Nigerian equities market closes marginally higher despite profit taking in big caps as U.S, Europe stocks close lower

After two consecutive sessions of losses, the Nigerian bourse rebounded as the All Share Index rose marginally by 1bp to close at 36,645.65 points while YTD return improved marginally to 36.4 percent. This is despite profit taking in big caps such as UBA and Zenith.

This is just as U.S and European stocks close lower after rebounds in previous trades.

Nigerian market performance was buoyed by price appreciations in STANBIC (+2.6%) and INTBREW (+5.0%). Similarly, market capitalization inched higher by N1.4 billion to close at N12.6 trillion while volume and value traded declined 29.1 percent and 41.3 percent to settle at 140.9 million units and N1.7 billion respectively.

Sector performance was mixed as three of five indices monitored were negative, while one closed positive and the other flat.

The insurance index led losers, down 1.3 percent on account of losses in MANSARD (-4.8%) and AIICO (-3.4%). The oil & gas index trailed, closing 0.5 percent lower due to a decline in FORTE OIL (-4.2%).

Similarly, the banking index fell 0.3 percent following sustained profit taking in UBA (-2.3%) and ZENITH (-0.2%), the latter released its third-quarter result Thursday with gross earnings growing 39.7 percent year-on-year to N531.0 billion from N380.4 billion in the corresponding period of 2016. PAT improved 35.6 percent to N129.3 billion from N95.4 billion recorded in 2016.

Contrarily, the consumer goods index was the lone gainer, appreciating 0.2 percent on account of gains recorded in INTBREW (+5.0%) and DANGSUGAR (+1.1%) while the industrial goods index closed flat.

DANGCEM also released its nine months result with gross revenue and PAT appreciating 36.5 percent and 44.6 percent to N603.6 billion and N193.1 billion respectively.

Investor sentiment improved as market breadth settled at 1.0x from 0.6x recorded on previously, consequent on 19 stocks advancing against 19 decliners.

Top performers were CUTIX (+7.7%), INTBREW (+5.0%) and FIDSON (+5.0%) while the worst performing stocks were MANSARD (-4.8%), CILEASING (-4.7%) and FIDELITY (-4.7%).

Despite the slight rebound recorded Thursday, analysts expect market performance to close the week in the red as profit taking may still dominate sentiments.

U.S. equities fell on Thursday following a record-setting session in which the Dow Jones industrial average closed above 23,000 for the first time.

The Dow pulled back 50 points and briefly fell more than 100 points. Tech giant Apple saw its stock decline 2.7 percent, amid speculation of poor demand and cuts in production of iPhone 8. The stock was on track to post its biggest one-day decline since Aug. 10.

The S&P 500 fell 0.2 percent, with information technology and consumer staples leading decliners. United Continental shares were the biggest decliners in the index, falling more than 11 percent.

The Nasdaq composite slipped 0.7 percent. Facebook, Google-parent Alphabet, Netflix and Amazon all fell about 1 percent.

In Europe stocks also closed lower on Catalonia uncertainty and mixed earnings Thursday as Spain’s government stated that it would move to suspend Catalonia’s autonomy. Equally, Thursday was the first day of the EU summit in Brussels, with Brexit a key point of discussion.