The Nigeria equity market recovered some lost ground in the month of July-2020, as the NSE-ASI was up by 0.9% m/m to close at 24,693.73 points and YTD loss settled at -8.0%. This was as local investors took position ahead of Q2-2020 earnings publications.
The sectoral analysis showed that four out of five sectors indices under our coverage closed the month in the red territory. The Oil & Gas sector was the hardest hit (-13.3% m/m), followed by the Consumer Goods (-8.9% m/m), Insurance (-5.7% m/m), and Banking (-1.2%) sector indices.
On the other flip side, the Industrial Goods sector was month sole gainer (+3.9% m/m). In terms of corporate action that occurred during the month, we saw a spree of earnings announcement from most of our coverage companies and the performance was mixed with some few impressive numbers from names like DANGSUGAR, DANGCEM, FBNH, FCMB, and OKOMUOIL that recorded both revenue and PAT growth in H1-2020.
Also, Law Union and Rock Insurance Plc announced that it has received the Securities and Exchange Commission’s ‘No Objection’ to the proposed 100% acquisition by Verod Capital Management. Lastly, Access Bank Plc announced a potential transaction between its Zambian subsidiary and Cavmont Capital Holdings Zambia.
This month, we expect the influx of earnings to continue to sway investors sentiment especially for the Banking names that have the probability of paying an interim dividend.
United Capital Research
