Equities Market Kick-Starts the Week Negative

Following the negative return recorded last week, the Nigerian equities market closed in the red as the NSE All Share Index fell 1.5% to settle at 41,988.18 points while YTD return moderated to 9.8%. Accordingly, investors lost N233.5bn as market capitalization closed at N15.1tn.  Today’s negative performance was primarily on account of downticks in bellwether stocks – DANGCEM (-3.3%), NESTLE (-4.2%) and ZENITH (-2.2%). In the same vein, activity level softened as volume and value traded 53.4% and 71.1% to 287.1m units and N2.3bn respectively.

Mixed Sector Performance
Sector Performance was mixed as 2 of 5 indices under our coverage trended southwards, 2 closed in the green and the other flat. The Consumer Goods index topped the losers chart, down 1.6% following losses in NESTLE (-4.2%) and NIGERIAN BREWERIES (-1.6%). The Industrial Goods index trailed, shedding 1.5% largely due to sell pressures in DANGCEM (-3.3%). On the flip side, the Insurance and Banking indices rose 74bps and 1bp respectively on account of price appreciation in LINKASSURE (+9.1%), MANSARD (+4.9%), GUARANTY (+2.2%) and FIDELITY (+2.5%). The Oil & Gas index closed the day flat.

Investor Sentiment Improves
Investor sentiment measured by market breadth (advance/decline ratio) improved to 0.5x from 0.3x recorded the previous Friday. The top performing stocks were LINKASSURE (+9.1%), LIVESTOCK (+5.0%) and FIDSON (+4.9%) while the worst performers were PZ (-8.0%), LASACO (-6.1%) and ENAMELWA (-4.9%). Although market breadth is still negative, its advancement is an indication of strengthening investor sentiment. Against this backdrop, we expect market to perform positively in subsequent sessions this week.