Nigerian stocks hold on to gains, adds 51bps
What shaped the market today?
The Nigerian bourse held on to gains for the first time in recent sessions (since April 6) thanks to sustained demand for Financials Services stocks and a rebound in the Consumer Goods sector. Meanwhile global markets traded mixed as investors reacted to a slide in oil prices and a slew of mixed earnings releases.
The Financial Services sector (+188bps) remained in positive territory as renewed investor confidence in Tier-I banking names grew stronger - ZENITHBANK (+243bps), GUARANTY (+296bps), ACCESS (+162bps) and UBA (+121bps). Similarly, the Consumer Goods sector (+59bps) halted a 3-day losing streak as investors eyed value in NB (+62bps) amidst depressed valuation (hovering at one-month low). The Industrial Goods sector however remained flat.
FBNH topped the volume chart trading 19 million units whilst GUARANTY topped the value chart for the third consecutive session trading 19 million units worth N305 million.
What will shape the next trading session?
Again, the latest earnings from another Tier-I bank (GUARANTY Q1’16) tops market expectation, and would most likely sustain renewed investor interest for banking stocks. Although we note the potential of reversals in the Consumer Goods sector in light of weak earnings expectations, we think the NSE ASI could leverage the strength of appeal for banking stocks in the session ahead.
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