The lead activities index of the Nigerian Bourse recorded the first slide for the week today as it gave up 3Bpts to close at 28,027.23. This brought the WtD returns to +69Bpts while the MtD loss is -109Bpts. NSE-Consumer Goods and NSE-LotusII shed points while other observed market indices gained. See the Index movement table for details.
On the other hand, the market capitalization gave up N2.431 billion, translating to a percentage loss of 0.03% of the opening value.
Today’s trading activities produced 13 advancers and 20 lagers. NSEASI YtD return is currently -2.15% while the Market Capitalization YtD return stood at –N223.802 billion.
Against popular expectations, the management of Forte Oil in its nine months financial report for the period ended 30th September 2016, reported a huge loss on back of high cost of running the business (see earnings column for analysis). Due to this fact, we omitted equities in the oil & gas sector from our recommendations. Thus we recommend a timely exit by those who followed our advice to position in the shares of Forte Oil this week.
In our opinion, four sectors may be considered for impressive/good nine months earnings;
Banking sector: Guaranty Trust, Access Bank, Zenith Bank, UBA, UBN are in our consideration list for the quarter
Insurance/ Service companies: AIICO, Continental Re-insurance and other servicing companies such as African Prudentials, UCAP and NPF-Micro Finance.
Agriculture: Presco, Okomu Oil and Airline Services might be considered in this sector.
Volume Index for week’s activity is 0.67 while buy volume and sell volume momentum is estimated at 77% and 23% respectively.