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.