Bears Strengthen Hold on the Market

The Bearish trend in the Nigerian equities market extended into the 2nd consecutive day as profit taking across board by investors drove the All Share Index 0.6% southwards, to settle at 25,563.78 points. The major counters responsible for the decline were NIGERIAN BREWERIES (-5.5%), WAPCO (-2.1%) and DANGCEM (-0.6%). Investors lost a total of N52.4bn as market capitalisation fell to N8.8tn. Activity level also weakened today as volume and value traded slid 46.0% and 34.5% to 178.6m units and N1.5bn respectively.

Consumer Goods Index Leads Sector Losers
In a turnaround from being the top gaining sector yesterday, the Consumer Goods index declined the most today, down 2.0% following profit taking in NIGERIAN BREWERIES (-5.5%) and CADBURY (-5.0%). The Industrial Goods index also declined, as the rout on WAPCO (-2.1%) and DANGCEM (-0.6%) persisted, driving the sub index 1.1% lower. On the other hand, the Oil & Gas index appreciated the most, up 1.6% majorly due to price appreciation in FORTE (+5.0%). Similarly, the Banking and Insurance indices grew 0.3% and 0.2% respectively.

Sentiments Worsen
Investor sentiments worsened today, though still positive, as market breadth (advancers’/decliners’ ratio) stood at 1.0x (from 1.4x yesterday) as 25 stocks appreciated while 24 depreciated. The gainers’ chart was topped by FIDELITY (+6.7%), MAYBAKER (+5.0%) and FORTE (+5.0%) while TRANSEXPRESS (-8.9%), CCNN (-6.2%) and NIGERIAN BREWERIES (-5.5%) led the losers’ list. After the Bullish start to the week, profit taking by investors has gained momentum and dragged market performance; however, we expect to see some bargain hunting in the session ahead as the week winds out.