Equities Market Extends Losses

The local bourse closed on a negative note extending losses from the previous session as the All Share Index (ASI) fell 1.5% to 42,185.38 points on Thursday while YTD return moderated to 10.3%. Sell-offs in DANGCEM (-2.3%), GUARANTY (-3.5%), ZENITH (-3.9%) and UNILEVER (-8.5%) weighed negatively on today’s performance. As a result, investors lost N234.0bn in value as market capitalization fell to N15.1tn. However, activity level was mixed as volume traded rose 8.4% to 404.0m units while value traded fell 11.9% to N6.0bn. ZENITH (66.9m), FBNH (48.4m) and REGALINS (41.2m) were the top traded stocks by volume while ZENITH (N1.9tn), GUARANTY (N591.8m) and FBNH (N544.2m) were the top traded by value.

Negative Sector Performance; Consumer Goods Index the Outlier
Performance across sectors was largely negative as all indices under our coverage closed in the red save the Consumer Goods index (+0.2%) which was buoyed by gains in NIGERIAN BREWERIES (+1.6%) and NESTLE (+1.1%). On the flipside, the Banking index topped the losers' chart as price depreciation in GUARANTY (-3.5%) and ZENITH (-3.9%) dragged the index 3.1% lower. Also, the Oil and Gas Index (-1.9%) declined as a result of profit taking in SEPLAT (-2.2%) and MOBIL (-4.0%) while the Industrial Goods and Insurance indices fell 1.3% and 0.8% respectively, dragged by losses in DANGCEM (-2.3%), CONTINSURE (-4.8%) and  MANSARD (-1.1%). 

Investor Sentiment Stays Flat
Investor sentiment measured by market breadth (advance/decline ratio) stayed flat at 0.4x as 15 stocks advanced against 38 stocks that declined. NPFMCRBNK (+9.8%), JOHNHOLT (+4.0%), and DANGSUGAR (+3.8%) where the top advancers while FIDELITY (-9.3%), JAPAUL OIL (-8.7%) and UNILEVER (-8.5%) were the worst performers. Despite the decline recorded today, we maintain our expectation for a rebound in market performance as we anticipate bargain hunting in blue chip stocks currently on a losing streak.