The Nigerian equities market closed Tuesday negative as the All Share Index shed 52bps to settle at 36,600.07 points; accordingly, YTD return retreated to 36.2%. Performance today can be largely attributed to losses in NIGERIAN BREWERIES (-3.3%), ZENITH (-3.0%), and GUARANTY (-1.4%). As a result, market capitalization decreased by N67.0bn to N12.7tn. Nonetheless, activity level improved as volume and value traded inched 23.6% and 34.3% higher to 258.0m units and N3.3bn respectively.
Sector Indices Performance Broadly Bearish
Sector performance was broadly negative as 3 of 5 major indices closed in the red. The Banking index led losers, down 1.2% as investors booked profit in ZENITH (-3.0%) and GUARANTY (-1.4%). The Oil & Gas index trailed, down 0.9% on the back of price depreciation in FORTE (-8.9%). Similarly, losses in NIGERIAN BREWERIES (-3.3%) and FLOURMILL (-5.9%) dragged the Consumer index 0.7% lower. The Insurance and Industrial Goods indices however closed the day flat.
Market Breadth Weakens
Market breadth (advancers/decliners’ ) - which measures investors’ sentiment, weakened to 0.9x from 1.2x recorded the previous day as 18 stocks advanced against 21 stocks that declined. The best performing stocks were CHAMPION (+9.1%), LINKASSURE (+5.2%) and CUSTODYINS (+4.8%) while FORTE (-8.9%), CAVERTON (-5.3%) and FLOURMILL (-5.0%) were the worst performing stocks. Although we expect year-end rebalancing of by portfolio managers to boost performance in December, market will likely continue to trade sideways in the interim due to absence of fundamental drivers of sentiment post-earnings season.