Equities Open Week Bearish

The Nigerian Bourse opened the week on a bearish note as the market recorded a loss at the end of today’s trading session. The All Share Index (ASI) settled at 25,318.41 points, down 6bps as sell pressure which persisted on ZENITH (-2.2%), FORTE (-5.0%) and ACCESS (-2.5%) dragged market performance. Investors in turn lost N5.2bn, bringing market capitalization to N8.7tn. However, market activity was mixed as volume traded increased 40.4% to 202.4m units while value traded declined 24.6% to N1.6bn.
 
Banking Index Emerges Lone Gainer
Sector performance was broadly bearish as all indices closed in the red save for the Industrial Goods index which closed flat and the Banking Index which emerged lone gainer on account of buy sentiment in GUARANTY (+1.8%) and ETI (+3.2%) offsetting losses in ZENITH (-2.2%) and ACCESS (-2.5%). On the flip side, the Insurance index topped sector decliners as it dipped 1.1% against the backdrop of losses in MANSARD (-4.8%) and CUSTODYIN (-0.5%) while the Oil & Gas index followed, down 0.4% as a result of price depreciation in FORTE (-5.0%) and OANDO (-4.8%). Likewise, the Consumer Goods index lost 1bp on the back of declines in UACN (-5.0%) and DANGFLOUR (-2.4%).
 
Investor Sentiment Remains Weak
Investor sentiment waned as market breadth (advancers/decliners ratio) weakened to 0.4x – 8 advancers versus 22 decliners - from 0.8x on Friday. The best performers were MOBIL (+5.0%), ETERNA (+4.6%) and FIDSON (+4.3%) while UACN (-5.0%), FORTE (-5.0%) and UAC-PROP (-4.9%) were the worst performers. As market sentiment remains weak with no cheering news to drive performance, we expect the market to remain soft in the days ahead.

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