The bearish start to the week in the Equities market was sustained on Tuesday as investors continued taking profit in stocks that had rallied last week. Consequently, the NSE All Share Index declined 0.9% to close at 29,575.24 points at the end of trade whilst YTD return eased to +3.3%. Investors also lost N91.0bn as market capitalization settled at N10.2tn. Sell-offs in NIGERIAN BREWERIES (-2.8%), GUARANTY (-3.0%), ZENITH (-1.9%) and FBNH (-5.9%) broadly impacted market performance. Similarly, market activity waned as volume and value traded declined 29.3% and 17.6% to close at 255.2m units and N3.3bn respectively.
Oil & Gas Index Emerges Biggest Loser
Performance across sectors also mirrored the benchmark index as all the indices ended today’s trading session in the red zone save for the Industrial Goods index which closed flat. The Banking and Insurance indices declined 1.6% and 0.4% on the back of depreciation in GUARANTY (-3.0%), ZENITH (-1.9%), UBN (-4.0%) and AIICO (-4.1%). Likewise, the Consumer Goods index shed 1.7% owing to profit taking in NIGERIAN BREWERIES (-2.8%) GUINNESS (-3.2%) and NESTLE (-0.6%) whilst the Oil & Gas index moved 3.4% southwards, dragged by the 5.0% and 4.8% decline in TOTAL and ETERNA.
Weakened Investors’ sentiment Persists
Similar to the first trading session of the week, investors’ sentiment remained weak today. Accordingly, market breadth (measured by advancers/decliners ratio) closed at 0.4x as a result of 15 advancers against 34 decliners. At the top of the gainers’ list were REDSTAREX (+9.9%), NEIMETH (+9.2%) and JBERGER (+5.0%) while TRANSCORP (-9.0%), FBNH (-5.9%) and OANDO (-5.7%) sat atop the losers’ list. As opined in the previous report, profit taking activities continued today, we believe the benchmark index will appreciate as we approach the end of the week as investors hunt for value ahead of Q2:2016 earnings releases.