Nigerian stocks trade lower with index dipping 1.2% as investors hedge their bets awaiting policy outcome

Nigerian stocks closed trading Tuesday on a negative note with benchmark index dipping 1.2 percent to settle at 34,951.27 points as investors hedge their bets awaiting monetary policy outcome.

Consequently, year-to-date gain fell to 30.1 percent. As a result, investors lost Market capitalization was pared by N140.5 billion to moderated at N12.0 trillion.

However, the central bank kept policy rate unchanged at the end of the MPC Tuesday

Market performance was largely due to losses recorded in DANGCEM (-3.3%), NESTLE (-1.6%) and NIGERIAN BREWERIES (-0.6%). On the other hand, activity level spiked as volume and value traded surged 366.9 percent and 164.9 percent to 500.3 million units and N3.6 billion respectively.

The industrial goods index led sector decliners with a 1.7% loss owing to a decline in DANGCEM (-3.3%). The consumer goods index followed suit, down 0.9 percent as NESTLE and NIGERIAN BREWERIES fell 1.6 percent and 0.6 percent respectively.

On the flip side, the oil & gas index rose 0.4 percent on the back of OANDO (+3.3%) while the insurance index (+0.2%) closed higher as a result of upticks in MANSARD (+4.7%) and NEM (+4.5%).

Similarly, the banking index marginally gained 0.1 percent due to price appreciation in ZENITH (+0.5%) and GUARANTY (+0.3%), which offset losses recorded in UBA (-0.6%) and ACCESS (-0.5%).

Investor sentiment weakened as market breadth (advancers/decliners ratio) retreated to 0.8x from 1.2x recorded yesterday after 15 stocks advanced against 19 decliners.

The gainers chart was led by NEIMETH (+4.8%), NASCON (+4.8%) and MANSARD (+4.7%), while the worst performers were INTBREW (-5.0%), MCHNICOLS (-4.8%) and CONTINSURE (-4.5%).

With the MPC voting to keep interest rates steady, analysts say they do not see any major impact on the equities market, adding that they expect and advise investors to stay bullish on stocks with sound fundamentals ahead of Q3:2017 earnings releases.

Equities market closed today on a negative note, as NSE ASI depreciated by -1.15% to close at 34,951.27 basis points as against -0.37% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at +30.05%.

Market breadth closed negative as NEIMETH led 16 Gainers as against 18 Losers topped by INTBREW at the end of today’s session- an unimproved performance when compared with previous outlook.

Market turnover closes positive as volume moved up by +366.92% as against -44.25% downtick recorded in the previous session. STERLNBANK, ACCESS and MANSARD were the most active to boost market turnover. GUARANTY and ACCESS topped market value list.

CONTINSURE leads the list of active stocks that recorded impressive volume spike at the end of today’s session.