FREE

The Market Today - 24 December 2018

ASI records sizeable gain following festive session                                                         

The Nigerian equity market was in full spirit, with the ASI up 338bps today, supported by green closes across all key sectors. Notably, this is the highest d/d gain since Jan 10. We expect end of the year activities to continue to drive interest in the equity market, with the All-Share index extending gains at market resumption on Thursday.                                                            

Taking the lead, the Oil & Gas (+569bps) and the Consumer Goods (+549bps) sectors recorded significant gains following notable advances in heavyweights, SEPLAT (+999bps), FO (+984bps), NESTLE (+10.00%) and NB (+262bps). Likewise, gains in CCNN (+983bps) and DANGCEM (+374bps) drove a positive performance in the Industrial Goods sector (+264bps). The Banking sector (+138bps) also trended northwards thanks to upticks in DIAMONDBNK (+10.00%), ACCESS (+213bps) and GUARANTY (+148bps).                                                

Stock Watch: FO announced the planned divestment of its majority shareholder's, Mr. Femi Otedola, CON 75% direct and indirect shareholdings in the Company’s downstream business. The stock gained 984bps today to close at ₦31.25.                                                               

Christmas cheer stops short of FI market                                                             

Continuing its tight monetary stance, the CBN offered ₦300 billion, selling ₦40 billion across the 94DTM, 192DTM and 311DTM in today's OMO auction at stop rates of 11.90%, 13.50% and 15.00% respectively. Amidst tight system liquidity and lukewarm investor sentiment, we do not foresee renewed interest in the secondary FI market and anticipate another tepid trading on Thursday.