Starting off the week, the performance pointer of the Nigerian Bourse closed in the green zone by 32Bpts. Similarly, the market capitalization of listed equities gained 32Bpts, same as N30.958 billion. Points gained by the lead index today adjusted lost points in October to 145Bpts. See the index movement table for details.
Today’s trading activities produced 17 advancers and 23 lagers. NSEASI YtD return is currently -2.50% while the Market Capitalization YtD return stood at –N258.796 billion.
Kicking off the earnings season are United Capital Plc (UCAP) and Infinity Trust, so far, traders’ response to UCAP impressive performance has been positive, this confirmed investors’ preparedness for the season. We do not expect more impressive performance from most listed equities especially from those in the manufacturing industry given the harsh economic situation and the dwindling nature of the nation’s GDP.
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
- Oil & Gas: Forte Oil, Total, and Mobil
- 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 0.73 while buy volume and sell volume momentum is estimated at 81% and 19% respectively.