OPEC cut jilts investor optimism in Nigerian equities market

Wednesday Summary          

On Wednesday 30th of November, the equities market was able to rebound from a protracted bearish run with the All Share Index gaining 0.03%. The day was marked by a substantial increase in value of transactions due to trades on large cap stocks.

MOBIL led the gainers’ list on Wednesday after gaining 10.24% to close at N266.67. Analysis  using the NSE sector indices revealed that the sector nudging the index upward were the NSEOILG5 (+2.44%), NSEBNK10 (+2.28%), and NSEFBT10 (+0.57%).

Thursday 1st December 2016

The sustained optimism  seen at the close of trade today is ascribed to the recent OPEC agreement to cut production by 1.2mb/d.  The announcement triggered a rally in oil prices to levels deemed positive to our oil & gas sector. Considering, the banking sector is heavily exposed oil, it similarly benefits from the development.

Gaining 0.09%, the All Share Index today closed at 25,265.08 riding on renewed investor optimism.  In 2,334 deals (2,567 on Wednesday) investors staked N1.910B (N3.418B on Wednesday) on 773.866M (414.155M on Wednesday) shares.  Market activity as such was mixed.

Market breadth improved and closed at 1.07x (0.9x on Wednesday) on the back of fifteen gainers and fourteen losers.

Oil and gas player (MOBIL) led the band of fifteen gainers to close at N294.00 while FO (10.22%), PORTPAINT (9.27%), OKOMUOIL (5.00%) and OANDO (4.75%) trailed.

As for the fourteen decliners, NAHCO (-4.92%) pared the most, closing at N2.32 followed by CCNN (-4.91%), UAC-PROP (-4.70%), NEIMETH (-4.17%) and WAPIC (-3.85%).