Benchmark Index Opens the Week Negative

The Nigerian Bourse opened the week lower as the All Share Index slid 0.7% to settle at 25,986.81 points whilst YTD loss worsened to -9.3%. Price decline in ZENITH (-4.2%), GUARANTY (-2.2%), FORTE (-9.7%) and ETI (-2.0%) were the major drags to market performance. Similarly, market capitalization dipped N63.4bn to settle at N9.0tn. Market activity weakened as volume and value traded dipped 92.9% and 57.6% to close at 160.9m units and N1.1bn whilst total number of deals closed at 2,431.
Insurance Index Eludes Bearish Sentiment
Performance across sectors was largely bearish as all sector indices trended southward save for the Insurance index which rose 0.6% on the back of gains in MANSARD (+1.6%) and WAPIC (+4.0%). The Oil & Gas index (-2.4%), dragged by FORTE (-9.7%) and OANDO (-4.9%), emerged the top sector loser. Likewise, the Banking index shed 2.1% on the back of sell-offs in ZENITH (-4.2%) and GUARANTY (-2.2%) while the Consumer Goods index lost 0.3% on account of losses in PZ (-4.4%) and GUINNESS (-1.1%). Similarly, the Industrial Goods index depreciated 0.2% at the close of trade.
Market Breadth Weakens
Investor sentiment remained soft as market breadth (advancers/decliners ratio) stood at 0.5x (from 0.9x on Friday). At the summit of the gainers’ chart were MAYBAKER (+4.7%), WAPIC (+4.0%) and LIVESTOCK (+2.5%) while FORTE (-9.7%), HONYFLOUR (-5.0%) and CADBURY (-4.9%) were the worst performers. Today’s performance can be attributed to sell pressure on some banking stocks. We expect market performance to remain soft in subsequent trading sessions; nevertheless, we do not rule out bargain hunting towards the end of the week.