Benchmark Index dips at the Exchange

At the close of trade on Monday, the benchmark index dipped 91bps to settle at 36,584.44 points whilst YTD gain moderated to 36.1%. As a result, market capitalisation contracted N115.9bn to settle at N12.6tn. Today’s negative close was largely attributed to losses in DANGECEM (-4.2%) which more than offset gains in GUARANTY (+3.0%) NIGERIAN BREWERIES (+1.4%) and ETI (+2.3%). Ex-DANGCEM, market would have gained 0.5%. However, activity level improved as volume and value traded surged 55.7% and 30.5% to settle at 368.4m units and N6.3bn respectively.
 
Mixed Sector Performance
Performance across sectors was mixed as 2 of 5 indices closed negative. The Banking index advanced the most, up 0.8% due to price appreciation in GUARANTY (+3.0%) and ETI (+2.3%). Likewise, the Consumer Goods index expanded 0.7% due to renewed interest in NIGERIAN BREWERIES (+1.4%) and FLOURMILLS (+8.7%). On the flip side, the Industrial Goods index declined the most, down 2.3% due to losses in DANGCEM (-4.2%) and WAPCO (-0.9%). In the same vein, the Insurance index slid 0.9% on account of price depreciation in MANSARD (-4.9%). The Oil & Gas index closed the day flat.
 
Market Breadth Moderates but Still Positive
Investor sentiment as measured by market breadth (advancers/decliners’ ratio) declined to 1.6x (from 2.1x recorded last week Friday). The best performing stocks today were FLOURMILL (+8.7%), TRANSCORP (+6.0%) and HONYFLOUR (+5.0%) while the worst performing stocks were VITAFOAM (-5.0%), MANSARD (-4.9%) and SCOA (-4.7%). Analysts at Afrinvest noted that whilst today’s market performance is largely attributed to losses in DANGCEM, the positive market breadth suggests investors are sourcing for bargain in stocks that had previously declined. Hence, we envisage an uptick in market performance in sessions ahead.

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