Local Bourse Pares Yesterday’s Gains

In line with our (Afrinvest) expectation, the domestic equities market reversed gains from the previous session as elevated sell pressures impacted market performance today. Consequently, the All Share Index (ASI) shed 0.1% to settle at 33,167.88 points while YTD loss moderated to -13.3%. Major drags today were FBNH (-8.3%), ZENITH (-3.1%) and SEPLAT (-4.6%) while gains in DANGCEM (+1.7%) cushioned the losses recorded. Market capitalisation also shed N10.3bn, settling at N12.1tn. Activity level strengthened as volume and value traded spiked by 105.4% and 108.4% to 309.1m units and N6.0bn respectively. The top traded stocks by volume were GUARANTY (57.6m), STERLING (57.0m), and FCMB (41.1m) while the top traded stocks by value were GUARANTY (N2.2bn), DANGCEM (N1.6bn) and NIGERIAN BREWERIES (N616.6m).

Industrial Index Emerges Lone Gainer
Amidst a bearish sector performance, the Industrial Goods index emerged the lone gainer in today’s session as gains in DANGCEM (+1.7%) erased losses in WAPCO (-4.1%) to push the index higher by 2bps. The Oil & Gas index led the negative performers in today’s session as sell pressures in SEPLAT (-4.6%) and OANDO (-2.9%) dragged on the index shedding 2.6%. The Banking index trailed as losses in FBNH (-8.3%) and ZENITH (-3.1%) pulled the index southwards by 1.7%. The Insurance and Consumer Goods indices also closed in the red, shedding 34bps and 31bps respectively as losses in LINKASSURE (-4.6%), LASACO (-6.3%), INTBREW (-1.6%), and DANGSUGAR (-2.1%), pushed the indices lower.

Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.7x from 0.9x recorded in yesterday’s session as 17 stocks advanced against 24 that declined. The best performing stocks for today were PRESCO (+9.4%), STANBIC (+7.1%) and DIAMOND (+6.5%) while MEYER (-9.7%), DANGFLOUR (-9.5%) and REGALINS (-9.1%) led the laggards in today’s session. While we continue to maintain a near term bearish outlook on the equities market, we anticipate a soft rebound in tomorrow’s trading session.