Stock Exchange Opens Trading Bearish

Equity transactions on the Nigerian Stock Exchange (NSE) on Tuesday resumed after the independence holiday on a negative trend, with market indicators depreciating marginally.

At the close of today’s trade, the equities market opened the week bearish as the All Share Index (ASI) shed 0.4% to close at 35,306.1 points while YTD return retreated to 31.4%. Thus, market capitalization decreased by N45.7bn to N12.2tn. Today’s performance was pulled by DANGCEM (-1.4%), NIGERIAN BREWERIES (-1.8%) and PZ (-6.8%). Ex-DANGCEM, market would have gone up 6bps. On the other hand, activity level improved as volume and value traded surged 169.0% and 51.1% to 634.3m units and N5.8tn respectively.

Mixed Sector Performance
Of the sector indices, 3 out of 5 closed positive reflecting a mixed performance across sectors. The Banking index led gainers, up 0.6% due to gains in ZENITH (+2.6%) UNION (+3.9%) and UBA (+1.7%). In the same vein, buy interest in WAPCO (+2.6%) pushed the Industrial Goods index up by 0.3% despite losses in DANGCEM. Likewise, the insurance index closed 0.1% higher owing to price appreciation in NEM (+4.3%). On the flip side, the Consumer Goods index fell 0.9% as NIGERIAN BREWERIES and PZ declined 1.8% and 6.8% respectively while losses in FORTE OIL (-3.6%) and OANDO (-0.5%) dragged the Oil & Gas index 0.3%.

Market Sentiment Softens
Market sentiment as measured by market breadth (advancers/decliners’ ratio) softened to 0.9x (from 1.0x recorded last Friday) after 18 stocks advanced against 21 decliners. Today’s best performing stocks were CILEASING (+9.8%), LEARNAFRICA (+6.8%) and CAVERTON (+4.8) while the worst performers were UNITYBANK (-5.0%), PZ (-5.0%) and UCAP (-5.0%). In the interim, there are no market drivers, but market watchers at Afrinvest expect market sentiment to improve as the earnings season begins today.