Benchmark Index Dips at Close of Market

The Nigerian equities market opened the week on a negative note. Intraday analysis of the index on Monday indicated that trading activities for the day commenced positive but took a sharp dip few moments before the closing gong on account of sell pressure on DANGOTE CEMENT (-0.6%).

Afrinvest Research, in its dealers' perception note, stated that the benchmark index shed 0.2% and closed at 30,265.90pts. Furthermore, market capitalisation decreased ₦20.7 billion to ₦10.4 trillion at the close of trade. In like manner, market activity waned as volume and value traded both reduced 60.9% and 58.2% to 130.4m units and ₦1.5 billion respectively.

Oil & Gas Index Emerges Lone Gaining Sector
Sector performances were broadly negative save for the Oil & Gas index which sustained gains from last week, closing 0.1% higher on price appreciation in SEPLAT (+1.3%). Losses in CONTINSURE (-4.1%) and AIICO (-4.3%) dragged the Insurance index down by 0.6%. Likewise, the Industrial Goods index waned 0.3% largely due to loss in DANGOTE CEMENT (-0.6%). The Consumer Goods index declined 0.1% while the Banking index was marginally down 3bps.

Market Sentiment Weakens
Market breadth (advancers/decliners ratio) eased to 0.6x as 27 stocks declined while 16 stocks advanced. ETRANZACT (+9.9%), PORTPAINT (+4.9%) and CUSTODYINS (+4.7%) led the top gainers while the top losers were VONO (-7.9%), CHAMPION (-5.0%) and INTERLINK (-5.0%). Ahead of the MPC decision which is to be broadcast tomorrow, we expect market activities to be rather calm as the committee makes a major call on key policy variables in the economy.