Profit Taking Drags Benchmark Index

Photo: The Nigerian Stock Exchange (NSE) on Wednesday honoured its former Director-General, Apostle Hayford Alile, whose exit was announced on October 1, 2018. At the closing gong event were members of the Alile family which include his children and widow, Dr. (Mrs.) Patience Alile as well President, CEO, Past Presidents and DG of NSE.


Investors profit taking on Wednesday in market bellwethers - WAPCO (-9.7%) GUARANTY (-0.7%) and DANGSUGAR (-3.4%) pulled the benchmark index down 0.1% to 32,108.30 points as market capitalisation fell N16.7bn to 11.7tn while YTD loss worsened to -16.0%. However, activity level trended higher as volume and value traded rose 200.8% and 236.4% to 450.1m and N9.4bn respectively. ZENITH (288.3m units), FBNH (41.0m units) and GUARANTY (N33.7m units) were top traded by volume while ZENITH (N6.9bn), GUARANTY (N1.3bn) and DANGCEM (N344.4m) were top traded stocks by value.
Largely Bearish Sector Performance
Performance across sectors was largely bearish as 4 of 5 indices under our coverage closed in the red. The Banking index was the sole gainer up 0.2% following buy interest in UBA (+2.6%) and ZENITH (+0.6%) despite marginal sell-offs in GUARANTY (-0.7%). On the flipside, the Industrial Goods and Insurance indices led decliners, down 2.3% and 2.1% respectively due to price depreciation in WAPCO (-9.8%), NEM (5.3%) and CONTINSURE (-4.7%). Similarly, the Oil & Gas and Consumer Goods indices shed 0.2% and 0.1% respectively following sustained sell pressures in SEPLAT (-0.3%),  DANGSUGAR (-3.4%) and  CHAMPION (-4.6%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.1x from 0.6x as 18 stocks advanced compared with 27 decliners. NIGERINS (10.0%), NPFMCRBK (+9.6%) and FIDSON (+8.9%) were today's outperforming stocks while AIICO (-9.9%), WAPCO (-9.8%) and MBENEFIT (-9.8%) led laggards. We believe the bearish performance observed today will be sustained in tomorrow's session despite the improvement in market breadth. We hence retain our bearish market outlook over the near term.