Nigeria’s equities index rallies 0.34% amid bank stocks underperforming globally

The Nigerian equities market continued its positive performance Wednesday with benchmark index gaining 0.34 percent to close at 37,138.97 points despite a 0.2 percent dip in the banking index. This is just as major indexes in the US fell on account of losses in bank stocks.

The Nigerian market year-to-date gain thus expanded to 38.2 percent, while market capitalization gained N43.4 billion to settle at N12.9 trillion.

The day’s performance was buoyed by gains in DANGCEM (+0.9%), INTBREW (+10.2%) and FBNH (+1.7%). However, activity level softened as volume and value traded fell 36.6 percent and 37.8 percent respectively to close at 193.5 million units and N1.8 billion.

Performance across sectors was mixed as two indexes trended northwards, two closed in the red and the other flat. The industrial goods index emerged the top gainer, up 0.5 percent due to sustained buying interest in DANGCEM (+0.9%).

Likewise, the consumer goods index added 0.4 percent on account of gains in INTBREW (+10.2%) and NASCON (+3.0%). On the flip side, the banking index lost 0.2 percent following profit taking in ZENITH (-0.9%) and ACCESS (-0.9%), while losses in LINKASSURE (-3.9%) dragged the insurance index 0.1 percent lower. The oil & gas index closed flat.

Market breadth (advancers/decliners ratio) declined to 0.9x from 1.3x recorded in the previous session. The day’s best performing stocks were INTBREW (+10.2%), LEARNAFRICA (+5.0%) and CAVERTON (+5.0%) while the worst performers were UAC-PROP ( -4.7%), LAWUNION (-4.4%) and LINKASSURE (-3.9%).

Offshore, U.S. equities fell on Wednesday as a decline in bank stocks knocked the major indexes from record levels.

The Dow Jones industrial average slipped 39 points, with JPMorgan Chase among the worst performing stocks in the index. JPMorgan fell 1 percent.

Strains on emerging market currencies building on US Fed’s intentions, political headwinds

The S&P 500 fell 0.15 percent with energy and financials as the biggest declining sectors. The SPDR S&P Bank exchange-traded fund (KBE) fell 1.2 percent and was on track to post a four-day losing streak. Bank of America was among the worst performers in the KBE, sliding 2.1 percent. The Dow and S&P hit record highs in the previous session.

In Europe, stocks edged lower on the day as investors focused on earnings and monitored President Donald Trump’s trip to Asia.

The pan-European Stoxx 600 came off its session lows to finish down 0.07 percent provisionally, while sectors pointed in opposite directions by the close.

Major bourses meanwhile ended mixed, with the U.K.’s FTSE 100 rising 0.2 percent, and Germany’s DAX popping 0.1 percent by the close. France’s CAC 40, however, slipped 0.18 percent.

Financials and banking stocks underperformed many sectors Wednesday, on earnings and doubts over U.S. plans to reform the tax system. The French bank Credit Agricole fell more than four percent after posting lower net profits.