Benchmark Index Sustains Negative Trend

Photo L-R: Favour Femi-Oyewole, Head, Information Security, The Nigerian Stock Exchange (NSE); Ade Bajomo, Executive Director, Market Operations and Technology, NSE; Laure Beaufils, British Deputy High Commissioner; Pai Gamde, Acting Head, Corporate Services Division, NSE; Ade Ewuosho, Head, Market Service, NSE  and Gbemi Sikuade, Engagement & Communications Officer, Department for International Trade (DIT) at the Close Gong Ceremony at the Exchange today in Lagos.

The benchmark index maintained its negative momentum at the end of today’s session, shedding 8bps to close at 34,846.82 points while YTD gain retreated to 29.7%. Sustained profit-taking in large caps - NIGERIAN BREWERIES (-1.2%), FBNH (-5.0%) and SEPLAT (-1.5%) dragged market performance. Accordingly, market capitalization declined by N9.1bn to close at N12.0tn. However, activity level improved as volume and value traded rose 7.3% and 84.0% to 174.7m units and N2.8bn respectively.

Mixed Sector Performance
Performance across sectors was mixed as 3 of 5 indices trended upwards. The Oil & Gas index led decliners with 1.0% loss on the back of sustained profit taking in SEPLAT (-1.5%). The Industrial Goods index trailed, shedding 0.4% on account of WAPCO (-0.9%). Similarly, the Consumer Goods index dipped 0.2% owing to losses in NIGERIAN BREWERIES (-1.2%) and PZ (-4.0%). On the flipside, the Insurance index gained 0.9% on the back of sustained interest in MANSARD (+4.7%) and LINKASSURE (+5.0%) while the Banking Index closed 0.4% higher due to GUARANTY (+1.4%).

Market Breadth Remains Negative
Investor sentiment weakened today as market breadth moderated to 0.5x (from 0.8x yesterday) after 13 stock advanced against 24 declining stocks. LINKASSURE (+5.0%), MANSARD (+4.7%) and NESTLE (+2.0%) topped the gainers’ chart while FBNH (-5.0%), 7UP (-5.0%) and NEM (-4.9%) led laggards. Following sustained profit taking in the market, we expect a rebound in the near term. This view is further reinforced by the fact that the benchmark Index currently trades at an RSI of 37.8 which is close to the over-sold region.