Bearish trend holds sway at the Exchange

The downtrend in the Nigerian bourse was extended on Wednesday as the benchmark index trended 0.6% southwards to 25,267.68points, while YTD loss increased to -6.0%. Dividend Adjustment in GUARANTY (-6.7%) as well as profit taking in UNILEVER (-5.6%) and OANDO (-4.9%) were the major drags to performance while market capitalisation fell N48.1bn to N8.7tn. Activity level was mixed as volume traded declined 15.8% to 771.7m units while value traded improved 8.4% to N2.6bn.

Oil & Gas Index …Lone Gainer
Performance across sectors was broadly bearish today. The Oil & Gas index was the only advancer, up 0.4% on account of gains in TOTAL (+3.8%). On the other hand, the Banking index depreciated the most, down 2.4% as price depreciation in GUARANTY (-6.5%) dragged the index. The Insurance and Consumer Goods indices also followed suit, losing 0.4% and 0.2% on the back of losses in CUSTODYINS (-4.5%) and UNILEVER (-5.6%) respectively. The Industrial Goods index closed flat.

Sentiment stays positive
Regardless of the decline in performance today, investor sentiment stayed positive as market breadth settled at 1.5x – 21 stocks advanced while 14 declined. The best performing stocks were TRANSCOHOT (+10.0%), AIRSERVICE (+4.8%) and FORTE (+4.4%) while GUARANTY (-6.5%), FCMB (-6.4%) and UNILEVER (-5.6%) declined the most. In line with our projection, the negative market performance was extended, nevertheless, investor sentiment stayed positive hence we expect the current downtrend to be reversed in the trading session ahead as investors hunt for bargains.

NASD OTC Exchange Market Activities
In the NASD OTC exchange, the total volume and value of transactions increased by 82.8% and 77.5% to 642,604 units and N19.4m respectively while only 4 counters were traded today. NDEP accounted for the largest proportion of value traded (65.1%), followed by CSCS Plc (17.3%) and NIPCO (11.8%).