Negative Sentiment Drives Index Southwards

The Nigerian bourse nearly recorded gains (NSE-ASI ex-DANGCEM up 17bps) Thursday but for negative sentiment on the largest index driver – DANGCEM (-1.5%) - which pushed the benchmark index 0.7% southwards to settle at 27,044.36 points. Market performance was also driven by declines in NIGERIAN BREWERIES (-1.5%) and ETI (-3.7%). Accordingly, market capitalization pared to N9.3tn as investors lost N61.4bn. However, activity level was mixed as volume traded fell 44.5% to 112.5m units while value traded rose 87.4% to N2.4bn.
Mixed Performance across Sectors
Sentiment across sectors was mixed as the Banking and Insurance indices gained 0.1% and 0.5% respectively on account of buying interest in ZENITH (+2.0%), UBA (+0.9%) and MANSARD (+2.6%). Contrary to yesterday’s positive close, the Industrial Goods index slid 0.8% to lead decliners; mainly on account of sell pressure on DANGCEM (-1.5%). The Consumer Goods index trailed closely as it dipped 0.6% on the back of extended negative sentiment on NIGERIAN BREWERIES (-1.5%). The Oil & Gas index followed, losing 0.1% on the back of sell offs in FORTE (-0.3%) and OANDO (-0.2%).

Investor Sentiment Declines
Investor sentiment waned as market breadth stood at 0.9x (from 1.2x yesterday) after 17 stocks advanced against 20 declining stocks. HONYFLOUR (+7.9%), MAYBAKER (+4.8%) and LEARNAFRICA (+3.9%) topped the gainers’ list while ASHAKACEM (-9.7%) UPL (-4.9%) and NASCON (-4.9%) led the losers’ chart. Today’s performance was mainly as a result of sell pressure on DANGCEM past midday trading hours. We expect the market to trade sideways in the interim, as investors take action on stocks following the lacklustre earnings season whilst positioning ahead of expected rally in December.