The downward trend in the Nigerian equities market persisted today as increased sell-offs drove the index (-0.8%) further southwards to berth at 27,385.69 points. The negative performance today was broadly driven by losses in FORTE OIL (-5.0%), GUARANTY (-2.7%) and DANGOTE CEMENT (-0.6%). Similarly, capitalization level in the market declined N79.7bn to N9.4tn. However, activity level in the market was mixed today as volume traded waned 5.5% to 319.7m units while value traded appreciated 13.5% to N3.1bn.
Insurance Index Lone Gainer
All sector indices, save for the Insurance index which appreciated 0.3% against the backdrop of gains in CONTINSURE (+5.0%), closed in the red today. The Oil & Gas index depreciated the most (-2.8%) consequent on sell-offs in FORTE OIL (-5.0%) and SEPLAT (-2.3%). Similarly, the Consumer Goods and Banking indices shed 0.9% and 0.7% respectively against losses in PZ (-6.2%) and GUARANTY (-2.7%). Following the same trend, the Industrial Goods Index fell 0.2%.
Negative Sentiments Linger On
Investor sentiments stayed negative as 21 counters advanced while 36 counters declined bringing market breadth to 0.6x. The best performing stocks at the close of trade were CONTINSURE (+5.0%), BETAGLAS (+5.0%) and STERLING BANK (+4.7%) while PZ (-6.2%), CCNN (-5.0%) and FORTE OIL (-5.0%) were the worst performing stocks. Given the sustained decline on the Nigerian bourse, we advise investors to maintain a medium to long term position in equities.