Market Halts 3-Day Rally

After 3 consecutive days of uptrend, the local bourse halted gains, as investors who have benefited from a recent rally took profit on Tuesday. The All Share Index pulled back 0.6% to settle at 26,655.48 points. In the same vein, investors lost N58.1bn as market capitalisation fell to N9.2tn. Sell offs in FORTE (-8.8%), ZENITH (-3.9%) and GUARANTY (-0.9%) were the major drags to performance, today. However, activity level strengthened as volume and value traded grew 23.3% and 26.2% to 395.9m units and N2.7bn respectively.

Consumer Goods Sector emerges Lone Gainer
In a turn of fortunes, all sector indices save for the Consumer goods index which rose 0.5% on account of gains in NIGERIAN BREWERIES (+1.6%) and NESTLE (+0.4%), declined. The Oil & Gas index depreciated the most, down 3.4% against the backdrop of profit taking in FORTE (-8.8%) and TOTAL (-2.9%). Similarly, the Insurance and Banking sector indices depreciated 2.0% and 1.4% respectively following losses in MANSARD (-4.9%) and ZENITH (-3.9%). The Industrial goods index marginally declined 3bps.

Sentiments turn Negative
Investor sentiments weakened as market breadth fell to 0.5x (from 1.1x yesterday) as 14 stocks advanced while 31 declined. The best performing stocks today were CONOIL (+9.5%), NEIMETH (+5.0%) and UNIONDICON (+5.0%) while VITAFOAM (-9.6%), DIAMOND (-9.5%) and TRANSCORP (-9.4%) depreciated the most. As we noted earlier, investors swung to profit taking following impressive gains in recent sessions, however, we see significant value in a number of fundamentally sound counters and advise investors to take advantage of these stocks.