Losses in the Nigerian bourse today moderated compared to previous session, as the All Share Index marginally declined 1bp to settle at 26, 948.43 points. Losses in DANGOTE CEMENT (-1.8%), the most heavily weighted stock on the bourse, dragged the market southwards at the close of trade. Likewise, investors lost a total of N801.1m as market capitalization closed at N9.3tn. Activity level in the market was mixed today as volume traded rose 3.8% to 196.5m units while value traded fell 36.6% to N2.0bn.
Industrial Goods Lone Sector Loser
All sector indices save for the Industrial Goods index which lost 0.9% on account of price depreciation in DANGOTE CEMENT (-1.8%) closed in the green. The Consumer Goods index rebounded from being the biggest loser yesterday to the top sector gainer today (+1.7%), buoyed gains in HONYFLOUR (+9.2%) and NIGERIAN BREWERIES (+3.4%). Similarly, the Banking index appreciated 0.3% against the backdrop of increased bargain hunting in GUARANTY (+2.6%) and ZENITH (+1.2%). The Insurance and Oil &Gas indices also improved 0.2% and 0.3% respectively.
Sentiments Remain Negative
Sentiments in the equities market strengthened today, though still negative, as market breadth rose to 0.8x (from 0.4x yesterday) as 16 stocks advanced while 21 stocks declined in prices. ASHAKACEM (+10.2%), PZ (+10.2%) and HONYFLOUR (+9.2%) were the top gaining stocks while CADBURY (-5.0%), UACN (-4.9%) and IKEJAHOTEL (-4.9%) depreciated the most. With increasing activities of year-end shoppers in the market as observed in today's marginal decline, we anticipate some marginal gains in the trading days ahead. However, we maintain that current market valuation is most attractive for medium to long term positions.