Capital Market Opens Week on Negative Note

The domestic equities market shed 24bps in Monday’s session to settle at 32,048.18 points due to sell-offs in NIGERIAN BREWERIES (-2.8%), UNILEVER (-6.0%) and UBA (-5.1%). As a result, market capitalisation declined by N28.0bn to N11.7tn while YTD loss further fell to -16.2%. Activity level also weakened, as volume and value traded trended lower by 34.0% and 38.6% to 157.7m units and N1.8bn respectively. The top traded stocks by volume were ACCESS (18.9m), FCMB (14.5m) and GUARANTY (N13.1m) while the top traded stocks by value were GUARANTY (N498.9m), PRESCO (N169.4m) and ZENITH (N165.7m).
  
Oil & Gas Index Emerges as Lone Gainer
Performance across sectors was largely bearish as 4 of 5 indices under our coverage trended southwards. The Consumer Goods  index depreciated the most, down 0.6%, following sell-offs in NIGERIAN BREWERIES (-2.8%) and UNILEVER (-6.0%). The Industrial and Banking indices trailed, as they shed 0.5% and 0.5% respectively, due to sell pressures CCNN (-9.4%), WAPCO (-0.6%), UBA (-5.1%), ACCESS (-4.2%) and FBNH (-3.9%). Losses in PRESTIGE (-8.9%) and NIGERINS (-8.3%) dragged the Insurance index lower by 0.5%. On the flip side, the Oil & Gas index closed as the lone gainer, up 0.8% due to gains in SEPLAT (+2.4%) following a positive 9M:2018 result.

Investor Sentiment Unchanged
Investor sentiment as measured by market breadth (advance/decline ratio) remained unchanged at 0.7x as 16 stocks appreciated against 24 decliners. UACN (+10.0%), CADBURY (+10.0%) and PRESCO (+9.9%) were the best performing stocks while the worst performing stocks were CCNN (-9.4%%), NNFM (-9.3%) and PRESTIGE (-9.3%). Today, we observed a largely positive performance till the last hour of trading as investor profit taking on large counters wiped off early trading gains. Nonetheless, we opine that bargain hunting would lift performance tomorrow while maintaining our near term bearish outlook.

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