Profit Taking Halts Positive Run

The local bourse posted a bearish performance on Thursday as profit taking in bellwethers – DANGCEM (-1.1%) and NIGERIAN BREWERIES (-1.4%) - dragged the All Share Index 48bps lower to close at 41,107.81 points while YTD return declined to 7.5%. Consequently, investors lost N71.8bn as market capitalization fell to N14.9tn. However, activity level was mixed as volume traded rose 16.0% to 320.4m units while value traded was down 30.9% to N4.8bn. Top traded stocks by volume were UBA (79.9m), ACCESS (57.0m) and ETRANZACT (20.3m) while the top traded by value were UBA (N935.2m), ACCESS (N644.4m) and ZENITH (N488.3m).

Mixed Sector Performance
Performance across sectors under our coverage was mixed as 2 of 5 indices closed in the green. The Banking and Insurance indices were up 0.8% and 0.2% respectively on account of bargain hunting in ETI (+3.5%), GUARANTY (+0.6%), UBN (+3.1%) and CONTISURE (+4.6%). On the flipside, the Consumer Goods index declined 1.5%, due to selloffs in INTERBREW (-8.3%), NIGERIAN BREWERIES (-1.4%) and UNILEVER (-4.4%) while the Oil & Gas index trailed, shedding 0.8% as investors exited positions in OANDO (-4.9%) and FORTE (-4.9%). Similarly, the Industrial Goods index lost 0.2% following profit taking in DANGCEM (-1.1%).

Investor Sentiment Weakens
Investor sentiment measured by market breadth (advance/decline ratio) weakened to 1.0x from 1.5x as 25 stocks advanced against 25 stocks that declined. The top performing stocks were UNITY (+9.5%), CCNN (+7.6%) and JAIZ (+7.1%) while the leading laggards were INTERBREW (-8.3%), DANGSUGAR (-5.0%) and DANGFLOUR (-5.0%). Despite today’s bearish performance, we expect the market to close the week in the green as investors continue to seek for bargain hunting.