Profit Taking Drags Down Market Performance

At the close of trading today, the All Share Index (ASI) fell 5bps to close at 35,188.97 points. Accordingly, the YTD performance retreated to +30.9% whilst investors lost N6.5bn as market capitalization settled at N12.1tn. DANGCEM (-1.6%) was the major drag to performance today, ex – DANGCEM market would have gained 0.6%. Activity level spiked as volume and value traded surged 212.5% and 665.4% to 429.2m units and N8.7bn respectively.

Sector Indices Stay Mixed
Sector performance stayed mixed as 2 of 5 indices declined. The Oil & Gas index led losers, down 0.7% on account of profit taking in TOTAL (-2.6%) and OANDO (-2.2%) while DANGCEM (-1.6%) dragged the Industrial Goods index 0.5% lower. On the flipside, the Consumer Goods index rebounded 1.3% due to gains in NIGERIAN BREWERIES (+2.9%) and GUINNESS (+2.6%) while GUARANTY (+0.7%) and UBN (+1.2%) buoyed the Banking index 0.2% higher. Similarly, the Insurance index added 0.2% due to upticks in NEM (+4.5%) and WAPIC (+2.0%).

Market Breadth Turns Positive
Despite the decline in performance, market breadth improved to 1.3x (from 0.9x yesterday) as 25 stocks advanced against 19 decliners. The best performers were NEIMETH (+4.9%), NEM (+4.5%) and FBNH (+4.3%) while AIICO (-5.4%), CHAMPION (-5.3%) and CAVERTON (-5.0%) were the worst performers. While we attribute today’s negative close to profit taking in DANGCEM, the positive market breadth suggests a hunt for bargains by investors. Hence, we expect the market to close the week in the green.