Bearish Trend Extends to Fifth Consecutive Trading Session

The slide downhill in the equities market persisted today, as the broader index declined for the fifth consecutive trading session. The Benchmark index slid 0.5% to close at 27, 687.80 points while YTD return pared to -3.3%. Sustained sell-offs in SEPLAT (-9.8%), WAPCO (-3.9%) and ZENITH (-2.1%) were the major drags on market performance. Similarly, market capitalisation fell N49.5bn to settle at N9.5tn. Activity level in the market further waned as volume and value traded depreciated 9.2% and 29.2% to 250.3m units and N2.2bn respectively.

All Sector Indices Decline
For the third consecutive trading session, all sector indices trended southwards. The Oil & Gas index depreciated the most for the second successive day, falling 2.2% on account of sell-offs in SEPLAT (-9.8%). Similarly, the Industrial Goods and Banking indices fell 1.5% and 1.0% on the back of losses in WAPCO (-3.9%) and ZENITH (-2.1%) in that order. In the same vein, the Insurance and Consumer Goods indices closed in the red, down 0.9% and 0.2% respectively.

Sentiments Stay Soft
Investor sentiment remained soft today as market breadth (advancers/decliners ratio) settled at 0.7x following 17 stocks that advanced while 24 declined. The gainers’ chart was topped by MRS (+10.2%), LIVESTOCK (+9.0%) and TRANSCORP (+5.9%) while SEPLAT (-9.7%), HONYFLOUR (-5.0%) and 7UP (-5.0%) topped the losers’ list. Following five consecutive days of depreciation in the market, we expect bargain hunting to set in and this is further buttressed by the 14-day RSI at 39.9 which suggests the market is closer to the oversold region.