Market Update for April 6,
The stock market indices extended its recovery on the floor of the exchange Thursday as highly capitalised equities added value amidst the reshuffling of portfolios by market players for the year’s second quarter, in line with value expectations going into the year. There was relative stability in the trading session, although with little intra-day oscillation to close higher on the back of positive volume.
The 2016 full-year numbers still hitting the market are mixed and even better than expected, considering the impact of the recession on production and consumption. But some are attributing the profit been post as a result loss cutting that led to massive downside in many companies.
Major stock markets of the world were lower as U.S missile struck Syria and the increasing U.S oil production continues to threaten the sustenance of crude oil prices, despite OPEC’s moves. This means that more measure will be taken by the oil producing nations to control production. The trade disagreement between U.S and China may further propel the run for safety in the markets as monetary policies of many nations remain mixed and major economics of the world hike rate. Some are cutting rate, while others are left unchanged.
Meanwhile, the composite NSE All Share Index gained 283.49 basis points to close at 25,755.18, after opening from 25,417.68, representing 1.11% growth on a high volume traded, when compared to the previous day’s figures. The volume index was 0.98 with buying position of 97%, while sell volume for the day was 3%.
Similarly, market capitalisation for the day was higher by N98.09 billion to close at N8.91trillion, from an opening value of N8.81trillion, representing 1.11% value creation for investors.
The value gain by high cap stocks at the close of Thursday’s trade further reduced the All-Share index’s year-to-date negative position to 4.11% and market capitalisation adjusted to N335.23 billion, representing 3.70% loss YTD, from the opening value.
Market breadth for the day was positive, but weak as the number of advancers outweighed decliners in the ratio of 19:18 to continue the bull transition. Market activity in volume and value were up by 52.24% and 31.86% respectively to 241.62m shares from 158.71m shares in the previous day, and N1.49bn from the previous value of N1.13bn respectively.
The volume of transaction was driven by shares of FBN Holdings, Fidelity Bank, United Capital, Zenith Bank and C&I Leasing that dominated the day’s trading as most traded equities by volume. The NSE All-Share index and all sectoral indices were once again in the green to close the day’s trading.
During the session, more of 2016 full-year financials were released including, Nahco, Okomu Oil, May & Baker that recommended a dividend of 22 kobo, 150 kobo and 6 kobo respectively. Just as a few others filed for delayed submission of their 2016 financials.
Dangote Flour led the advancers log with 9.76% to close at N4.16, driven by a turnaround in 2016 performance after reporting a huge loss in previous year’s numbers, followed by 7-Up with 9.40% to close at N104. 90; while Redstar Express topped the decliners log, to close at N4.30, ahead of Conoil which closed at N33.25.
We advise that investors allow numbers to guide their decisions in repositioning for Q2 as the first quarter earnings reporting season is just kicking off. Industry potential is very important when picking a particular company, because there are things that are sector-wide and would naturally impact positively or negatively on companies operating within such an industry.

MR. OMORDION AMBROSE
CHIEF OPERATING OFFICER
INVESTDATA LIMITED
ambroseconsultants@yahoo.com
TEL:01-4724645,08028164085,07028061501