16th May 2019

The Nigerian bourse recorded its first session of gains in nine sessions rising 54bps (+152 index points) on the back of the 10% gain in MTN. Excluding MTNN, which listed 20 billion units on the exchange by introduction, the market would have closed in the red. Activity increased for the first time in three sessions (volume: +76% d/d; turnover: +35% d/d) and the increase can be attributed to positive sentiment surrounding the new listing. However, general market sentiment was bearish as evidenced by negative market breadth (10 advances vs. 25 declines) and red closes in all key sectors.

What will shape the market tomorrow? 

The emergence of a new market catalyst, in the listing of MTNN, is a positive for the market as observed in today's green close. Thus, analysts expect to see another positive close tomorrow buoyed by activity on MTNN, which should filter into other stocks on the exchange. 

Reporting for EasyKobo on Thursday , 16 May 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited