Nigerian Bourse Records Largest Decline in Weeks

The Local Bourse recorded its largest decline in 7 weeks as the All Share Index (ASI) lost 96bps on Tuesday to close at 36,953.41 points while YTD return declined to 37.5%. Consequently, investors lost N124.2bn as market capitalization settled at N12.8tn. The trading session’s negative close is majorly attributable to losses in NESTLE (-3.1%), ZENITH (-4.7%) and DANGCEM (-0.6%). Likewise, activity level weakened as volume and value traded fell 29.1% and 88.6% to 238.6m units and N3.4bn respectively- due to high base of yesterday's trading activity following a one-off cross deal of DANGCEM valued at N27.0bn
Bearish Sector Performance
Sector Performance was largely negative with the Oil & Gas index emerging the lone gainer. The biggest losers were the Industrial and Banking indices, down 1.4% apiece, owing to price depreciations in ZENITH (-4.7%), GUARANTY (-0.3%), DANGCEM (-0.6%) and WAPCO (-2.8%). The Consumer Goods index trailed, down 1.3% following losses in NESTLE (-3.1%) and UNILEVER (-5.0%). Similarly, depreciations in LINKASSURE (-4.6%) and AIICO (-3.6%) dragged the Insurance index 0.1% lower. The day’s lone gainer- the Oil & Gas index- was driven by buying interest in FORTE (+1.4%).
Market Breadth Declines Further 
Market Breadth declined further from 0.6x recorded yesterday to 0.3x (11 advancers/31 decliners). The top performing stocks were VITAFOAM (+5.0%), NAHCO (+4.8%) and NEM (+4.3%) while the worst performers were CAVERTON (-9.4%), CILEASIN (-8.8%) and UNILEVER (-5.0%). Following the day's unprecedented loss, we expect bargain hunting to drag market performance positive in subsequent trading sessions.