Bears Extend Hold at the Stock Market

The local bourse remained in the red on Tuesday, extending the bearish run into the seventh consecutive trading session with the All Share Index (ASI) falling 2.4% to settle at 41,708.15 points while YTD return contracted to 9.1%. As a result, market capitalization decreased by N369.5bn to N14.9tn. Sustained sell-offs across board was experienced today, with DANGCEM (-4.9%), NIGERIAN BREWERIES (-3.9%) and NESTLE (-2.9%) being the major drags on performance. Similarly, activity level weakened as volume and value traded fell 9.1% and 29.0% to 470.5m units and N3.7bn respectively.

Consumer Goods Index Leads Bearish Sector Performance
Performance across sectors was bearish as all indices trended southwards. The Consumer Goods index was the biggest loser, down 2.8% following price depreciation in NIGERIAN BREWERIES (-3.9%) and NESTLE (-2.9%). The Industrial Goods and Insurance indices trailed, shedding 1.6% and 1.5% respectively as investors took profit in DANGCEM (-4.9%), MANSARD (-2.7%), and CONTINSURE (-4.3%). In the same vein, sell pressure on FORTE (-5.0%) and MOBIL (-0.3%) dragged the Oil & Gas index 0.6% lower while the Banking index slid  0.2% due to losses in UBA (-5.5%) and UBN (-5.0%).

Market Breadth Remains Flat
Market breadth (advance/decline ratio) which measures investor sentiment, remained flat at 0.4x consequent on 15 stocks advancing against 40 stocks that declined. The best performing stocks were AGLEVENT (+7.0%), BERGER (+5.0%) and ETERNA (+5.0%) while PRESTIGE (-7.1%), SKYE (-6.5%) and HMARKINS (-6.1%) were the worst performers. Following seven consecutive days of decline in the market, we do not rule out the possibility of an upswing in performance before the end of the week. Our view is buttressed by the fact that the current 14-day RSI stands at 38.8 points, which is closer to the oversold region.

In the NASD OTC Exchange, total volume and value traded stood at 17,823 units and N2.5m respectively. The SDFCWAMCO and SDNDEP were the only instruments traded today.