Equities Start the Week Lower

The Nigerian equities market closed negative at the end of trade on Monday, losing 0.4% to settle at 25,136.63 points whilst YTD loss increased to -6.5%. Similarly, investors lost N35.1bn as market capitalization fell to N8.7tn. Today’s negative performance was largely as a result of losses in ZENITH (-10.0%) and DANGCEM (-0.6%). Also, market activity moderated as volume and value traded fell 44.8%and 70.6% to 135.4m units and N681.2m respectively in 2,909 deals.

Mixed Sector Performance
Sector indices was broadly mixed as 3 indices declined while 2 gained. The Banking index led the sector losers with a 1.0% loss, dragged by ZENITH (-10.0%). The Oil & Gas index trailed with a 0.6% decline due to sell-offs in FORTE (-4.9%) and MOBIL (-1.8%) while DANGCEM (-0.6%) dragged the Industrial Goods index 0.3% lower. On the other hand, the Insurance index gained 0.4% on account of buying interest in MANSARD (+4.6%) whilst GUINNESS (+3.0%) drove the Consumer Goods index 0.1% higher.

Market Breadth Stays Positive
Investor sentiment as reflected in market breadth (advancers/decliners ratio) remained unchanged at 1.0x on account of 12 advancing stocks against 12 decliners. The best performing stocks today were UCAP (+6.2%), UBN (+4.9%) and ETI (+4.7%) while ZENITH (-10.0%), FORTE (-5.0%) and LIVESTOCK (-4.5%) led laggards. We believe today’s negative close may extend to tomorrow as investors take profit, especially on the stocks that rallied last week. Furthermore, with current macroeconomic realities dampening investor sentiment, we expect market volatility to persist.