Bears Claw Market Back to the Red

In a turn of fortunes for the Nigerian equities market, investors took to profit taking on bellwethers which were the major drivers of the impressive performance observed yesterday. Consequently, the Benchmark index- All Share Index- depreciated 0.6% to close at 25,716.06 points on account of sell offs in ETI (-5.2%), FORTE (-1.8%) and DANGCEM (-1.5%).  In the same vein investors lost N51.4bn as market capitalisation fell to N8.8tn. Nevertheless, activity level strengthened as volume and value traded grew 50.1% and 50.5% to 330.5m units and N2.3bn respectively.

Bearish Sentiments across Sectors
All sectors save for the Consumer Goods index closed lower. The Consumer Goods index rose 0.2% following price appreciations in UNILEVER (+5.0%) and NIGERIAN BREWERIES (+0.3%). On the flipside, the Banking index led sector losers, down 1.0% as a result of sell pressure on ETI (-5.2%) and GUARANTY (-0.6%). The Oil & Gas index trailed, losing 0.6% as FORTE (-1.8%) continued downbeat while the Industrial Goods and Insurance indices fell 0.1% apiece.

Positive Sentiments Persist
Despite the negative close, investor sentiments measured by market breadth (advancers/decliners ratio) stayed positive at 1.4x as 26 stocks advanced while 19 retreated. The top performing stocks were TIGERBRANDS (+10.0%), ETERNA (+9.9%) and AIRSERVICE (+9.5%) while ETI (-5.2%), PZ (-5.0%) and FIDSON (-4.9%) were the worst performers. As noted above, today’s performance was broadly driven by profit taking which may be sustained tomorrow in the absence of any market moving news flow, however we expect a positive close for the week.