Stock Market Bleeds on Huge Sell-Offs

The Nigerian equities market sustained its losing streak into the 3rd trading day in the New Year, recording the highest loss in 13 months with 3.3% to 27,180.76points. The colossal loss recorded on the bourse today was majorly on the back of the massive sell pressure recorded in DANGOTE CEMENT (-9.8%) -- the most capitalised stock on the bourse. The sustained decline in NIGERIAN BREWERIES (-5.5%) also deepened the decrease in the broader index. Consequently, market capitalization shed N316.9bn to settle at N9.3tn while market activities were mixed as volume rose 3.4% to 202.7m units and value fell 21.7% to N1.5bn.

All Sectors Close Southwards
It was a sea of reds for all sectors in the Nigerian equities market. The Consumer Goods sector emerged the highest loser with 2.1% consequent on losses in NIGERIAN BREWERIES (-5.5%) and PZ (-2.9%). Equally, against the massive decline in DANGOTE CEMENT (-9.8%), the Industrial Goods sector trailed with 1.3%. The Banking index followed with 0.9% due to depreciations recorded in ACCESS BANK (-2.6%) and UBA (-2.4%). The Insurance and Oil & Gas sectors declined 0.3% and 0.2% on the back of losses in AIICO (-4.2%) and OANDO (-1.5%) respectively.

Slight Improvement in Market Breadth
Market breadth, though still negative improved to 0.7x from 0.5x recorded yesterday after 14 stocks advanced over 19 declining stocks. The highest gainers during trade were WAPCO (+9.4%), NAHCO (+5.0%) and BERGER (+5.0%) while DANGOTE CEMENT (-9.8%), UNION HOMES (-9.5%) and SKYE BANK (-9.3%) were top losers. Given that the market seems to be unbothered about the IMF Boss' visit, we believe an improvement in the broader index may only come on the heels of sound policy indications from the economic managers. Consequently, we urge investors to maintain long term positions in equities.