March 8 (Lagos) - The Nigerian Stock market All Stock Index fell by 0.54% dashing hopes of a recovery especially after DANGCEM
led the market higher yesterday.
Today it was the opposite as DANGCEM
fell 2.85% and since it is the most heavily capitalized stock of the market, it dictates the movement of the all stock index. The other Cement Company Lafarge Africa ( WAPCO
) also declined 5% today.
Banks followed the cement manufacturer lower with GTB down 0.31% as analysts were not too cheerful after the fourth quarter results were released and the tax bill was digested.
First Bank fell 1.33% to below N 3 levels once again and no surprises here. UCAP fell more than 7% today however UBA
was up 0.2% while ZENITHBANK
fell 0.68% as well.
The only positive from todays session in our view was the 5% uptick in blue chip UNILEVER
stock as the stock has been beaten down and this is UNILEVER
we are talking about at below N 30 levels. Yes we know the P/E and the P/B but remember these are the stocks the foreign investors pick first when they start looking at emerging markets.
But with Crude oil futures down 5% today at NYMEX , foreign investors are likely to stay away as that is what determines the GDP of Nigeria along with the exchange rate which is still in tatters.
We are at a point were we fell happy that it has appreciated to 460 levels against the Dollar. Clearly foreign investors have other options and Nigeria is competing with the rest of the world for their Dollars so we have to gain momentum now or watch from the sidelines.
reporting for easykobo.com on Wednesday, March 8 2017 from Lagos, Nigeria