Bearish Run Extended to 5th Consecutive Session

The bearish trend in the Nigerian Equities market worsened today as the All Share Index dipped 1.9% to close at 26,364.27 points, while YTD return worsened to -8.0%. Accordingly, market capitalisation contracted by N180.1bn to settle at N9.1tn. Losses sustained in DANGCEM (-4.9%), WAPCO (-4.9%) and GUARANTY (-2.1%) dragged market performance. Market activity improved as volume and value traded rose by 64.3% and 38.3% to settle at 189.0m units and N1.6bn respectively.

Consumer Goods Index, Lone Gainer
Sector performance was largely bearish as all indices closed lower save for the Consumer Goods index which rose 52bps on the back of gains in GUINNESS (+2.9%) and NIGERIAN BREWERIES (+1.4%). The Industrial Goods index slumped 4.5% as investors took profit in WAPCO (-4.9%) and sold off on DANGCEM (-4.9%). In the same vein, the Oil & Gas index closed lower (-1.3%) for the 6th consecutive session on account of sell-offs in FORTE (-5.0%) and OANDO (-1.8%) while the Banking index slid 1.2% on price depreciation in GUARANTY (-2.1%) and ZENITH (-1.2%). Similarly, the Insurance index lost 0.4% due to losses in WAPIC (-3.8%) and AIICO (-3.3%).

Weak Investor Sentiment
Investor sentiment remained weak today as market breadth stood at 0.5x (same as yesterday at 0.5x) after 13 stocks advanced against 26 declining stocks. The best performing stocks were CAP (+5.0%), GLAXOSMITH (+5.0%) and AIRSERVICE (+4.9%) while CHAMPION (-9.5%), UACN (-5.0%) and FORTE (-5.0%) were the worst performers. Given the negative trend in the equities market, we view an opportunity for short-term investors to take advantage of fundamentally sound stocks currently trading at attractive entry prices.