The gains recorded in the benchmark index yesterday can be viewed as a "Dead Cat Bounce" as sustained profit taking in today's trading session dragged the NSE All Share Index (ASI) lower by 83bps to settle at 40,651.41 points while YTD return moderated to 6.3%. As a result, investors lost N123.7bn as market capitalization declined to 14.7tn. Activity level strengthened as volume and value traded rose 63.5% and 73.4% to 424.4m units and N7.6bn respectively. ZENITH (170.6m), ACCESS (44.2m) and FCMB (25.9m) were the top traded stocks by volume while the top traded stocks by value were ZENITH (N4.7bn), NESTLE (N806.7m) and ACCESS (N486.3m).
Largely Bearish Sector Performance
Performance across sectors was largely bearish as 4 of 5 indices closed in the red. The Oil & Gas index closed positive, up 1bp, following gains in FORTE (+0.1%) which offset selloffs in SEPLAT (-2.0%). On the flip side, the Industrial Goods index, today's largest decliner, lost 1.6% on account of profit taking in DANGCEM (-0.8%) and WAPCO (-2.4%). In the same vein, the Consumer Goods and Banking indices followed, shedding 1.1% and 0.4% respectively on the back of sell pressures in NIGERIAN BREWERIES (-3.5%), UBA (-3.1%) and ACCESS (-0.9%) while the Insurance index fell 4bps due to investors exiting EQUITYASUR (-3.7%) and NEM (-0.8%).
Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) improved to 0.7x from 0.5x recorded yesterday as 18 stocks advanced while 27 stocks declined. The top gainers for today were SOVRENINS (+9.1%), CUSTODIAN (+5.0%) and OANDO (+4.9%) while CCNN (-5.3%), STERLING (-4.9%) and AFRINSURE (-4.8%) led laggards. In spite of investors profit taking today, we (Afrinvest) expect to see investors take position in some relatively undervalued mid and small cap stocks in tomorrow trading session