Market Opens Week Bearish

The equities market opened the week on a bearish note as the All Share Index (ASI) shed 45bps to close at 44,261.72 points while YTD return moderated to 15.7%. Accordingly, market capitalization fell by N71.2bn to settle at N15.8tn. Monday’s negative performance was largely due to losses in DANGCEM (-2.9%), UBA (-3.1%) and FBNH (-1.8%). On a similar note, activity level softened as volume and value traded fell 32.3% and 19.6% to 426.8m units and N2.8bn respectively.
 
Mixed Sector Performance
Sector performance was mixed as 3 of 5 indices closed in the red while 2 trended northwards. The Industrial Goods index was the top loser, down 1.3% primarily on the back of price depreciation in DANGCEM (-2.9%). The Oil & Gas index (-1.3%) was dragged following losses in FORTE (-4.9%). Similarly, profit taking in NASCON (-2.3%) and DANGFLOUR (-1.2%) pulled the Consumer Goods index 0.7% southwards. On the flip side, the Insurance index was the top gainer, up 1.6% as buy interest in AIICO (+10.0%), AFRIPRUD (+4.0%) and LINKASSURE (+5.9%) buoyed performance. Also, the Banking index closed the day positive, up 1.4% as investors took position in ZENITH (+2.2%) and GUARANTY (+0.6%).
 
Investor Sentiment Remains Soft
Investor sentiment as measured by market breadth (advance/decline ratio) stood at 0.6x as 22 stocks advanced against 34 decliners. Today’s top performers were AIICO (+10.0%), PRESTIGE (+8.3%) and LINKASSURE (+5.9%) while UNIC (-8.7%), HMARKINS (-8.3%) and SKYE (-5.6%) were the worst performers. Despite the negative performance today, our near-term outlook on performance remains positive as investors continue to seek for bargain opportunities in anticipation of full year earnings releases.

In the NASD OTC Exchange, total volume and value traded stood at 115,612 units and N1.7m respectively. The SDCSCSPLC, SDMASSTCOM and SDFCWAMCO were the only instruments that traded today.

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