The Nigerian Equity market maintained it three days positive rally to close in the green. As the composite index NSEASI gained 124.93 points to close at 24,909.88 from opening figure of 24,784.95 representing 0.50 percent growth. This was attributed to positive sentiment resulting from the seemingly improving first quarter earnings reports notwithstanding the prevailing economic situation. Trading for yesterday opened on a strong momentum but slowdown in the mid-day to reverse up at the close of the day on improved volume as capitalized stocks like Zenith, Mobil, NB, Flourmills and Seplat appreciated in price. Similarly the market capitalization gained N42.98 billion to close at N8.57 trillion representing 0.50 percent increase in value for the day under review.
The bull transition continue as the market breadth remain strong and positive with the number of advancers outpaced that of decliners in the ratio of 27 to 17. The volume of trades for the day were up at 178 million shares in contrast to 158 million shares, representing 13 percent increase while value recorded N1.18 billion as against N1.11 billion which represents 6 percent improvement from their previous trading levels. Transactions in the shares of ZENITH, GUARANTY, FBNH, SKYEBANK and UCAP topped the activity chart as most traded equities as measured by volume. The increasing volume of trades in the banking stocks despite the poor performance of some banks in 2015 financial year result with profit warning here and there. The few performing bank stocks have started out with strong first quarter earnings which is the point of attraction at the market arena as shown by deals and volume of trades in those banks.
The leading indicator NSEASI and all sector indices closed upbeat with NSEBNK topping the trend with 1.47 percent gain for the day under review.
NSEASI DAILY TIME FRAME
NSEASI is currently trending up as triggered in three days ago by positive earnings reports of the few banking stocks and consumer goods that had hit the market so far. The first quarter scorecards will determine the market direction as it’s the only factor to drive prices up or lower at this point. With the symmetrical triangle chart pattern of the market which is a continuation or reversal, the market is likely to breakout but profit taking from the few days rally may pullback the trend especially as today is the last trading day of the week.
MARKET NEW
Champion Breweries released its first quarter earnings report to the market and it was positive but low earnings per share of 1 kobo from a zero position in the previous year.
Lafarge Africa notify the exchange of the new date of its AGM, which comes up on 27, June 2016 at Zinna-Jasmine Hall, Eko Hotels & Suites, Victoria Island, Lagos.
OTHER MARKET PERFORMANCE INDEX
| Index | Open | Close | %Change |
| ASI | 24,784.95 | 24,909.88 | 0.50 |
| NSE 30 | 1,089.19 | 1,096.17 | 0.64 |
| NSE BNK | 226.78 | 230.11 | 1.47 |
| NSE- INSURANCE | 130.72 | 131.54 | 0.63 |
| NSE COSMAR | 585.48 | 589.37 | 0.66 |
| NSE OIL & GAS | 347.99 | 350.46 | 0.71 |
| NSE LOTUSUM | 1,686.05 | 1,686.60 | 0.03 |
| NSE INDUSTRY | 1,860.22 | 1,881.04 | 0.04 |
| NSE PREMIUM | 1,539.78 | 1,544.88 | 0.33 |
| NSE PENSION | 710.43 | 718.69 | 1.16 |
| NSE MAINBOARD | 1,118.28 | 1,125.16 | 0.61 |
| MTA CAP (N’trillion) | 8.53 | 8.57 | 0.50 |
TOP 5 ADVANCERS & DECLINERS FOR THE DAY
| Company | Open | Close | %Change | Remarks |
| Tiger brands | 2.65 | 2.91 | 9.81 | Market Forces |
| Access Bank | 3.76 | 3.98 | 5.85 | Q1 Expectation |
| CCNN | 6.45 | 6.77 | 4.96 | Market forces |
| Berger Paints | 8.52 | 8.94 | 4.93 | Market forces |
| UBA | 3.34 | 3.50 | 4.79 | Impressive Q1 |
| DECLINERS | ||||
| Union Home | 4.28 | 3.87 | -9.58 | Price Correction |
| Cutix | 1.44 | 1.37 | -4.86 | Market forces |
| Champion Brew | 3.10 | 2.95 | -4.84 | Market forces |
| PremBrew | 2.95 | 2.82 | -4.75 | Market forces |
| Portland Paints | 2.75 | 2.62 | -4.73 | Market forces |
Market Outlook
The market is likely to slow down as traders will be taking profit from the few days rally, which is also likely to trigger mixed sentiment on the floor of trading today. Let the first quarter earnings guide your entry and exit, since the economic fundamentals are yet to start looking up.
STOCKS TO BUY
Fcmb, Access Bank, Uba, Dangote Cement, Dangote Sugar, and Africa Prudential