Bears Claw Market into the Red

The Nigerian Equities market returned to the red today, which did not come as a surprise as investors were bound to take profit after 4 consecutive days of gain amid weak macro-economic conditions and uninspiring deliberations from the recently concluded MPC meeting. Sell offs by investors across board resulted in the 1.1% decline in the All Share Index, which settled at 25,736.92 points. Losses sustained in ZENITH (-2.8%), DANGCEM (-2.4%) and GUARANTY (-1.8%) pulled the index southwards. Accordingly, investors lost N97.5bn as market capitalization settled at N8.8tn. Activity level however, strengthened as volume and value traded advanced 16.0% and 7.7% to 398.3m units and N2.6bn respectively.

Consumer Goods Index Emerges Lone Gainer
All sector indices, save for the Consumer Goods index (+1.0%) which was buoyed by gains in NIGERIAN BREWERIES (+4.0%), closed in the red. The Industrial Goods Index was the biggest decliner, losing 2.0% on account of sell offs in DANGCEM (-2.4%) and WAPCO (-1.7%). Similarly, the Banking index fell 1.5% against the backdrop of losses in ZENITH (-2.8%) and GUARANTY (-1.8%). The Insurance and Oil & Gas indices also followed suit, depreciating 1.2% and 0.8% respectively, to close out the poor performance.

Weak Sentiment Persists
Sentiments in the Nigerian bourse stayed negative today as seen in the market breadth (advancers/decliners ratio) which settled at 0.3x consequent on 9 stocks that advanced as 32 stocks declined. The best performing stocks today were NAHCO (+5.0%), VITAFOAM (+4.9%) and FIDELITY (+4.5%) while CADBURY (-9.7%), INTERNATIONAL BREWERIES (-7.8%) and DIAMOND BANK (-7.1%) were the worst performing stocks. Most large caps in the bourse have already released their earnings result for the last Quarter/Full Year, hence we expect the market trade sideways while anticipating the few outstanding earnings broadcast to trickle-in.

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