Equities Reverse Gains

The rebound in equities witnessed during last trading session proved to be a “dead cat bounce” as the market continued to experience selling pressure. At the close of trading on Thursday, the All Share Index (ASI) shed 10bps to close at 25,490.70 points while YTD loss worsened to 11.0%. Consequently, investors lost N9.1bn as market capitalization settled at N8.8tn. Today’s market performance was largely dragged by TOTAL (-9.0%), ZENITH (-1.1%), and STANBIC (-1.9%). On the other hand, activity level was mixed as volume traded fell 41.4% to settle at 97.1m units while value traded rose 1.2% to settle at N1.1bn.

Mixed Sector Performance
Performance across sectors was mixed. The Oil & Gas index topped the losers’ chart closing 1.4% lower due to profit taking in TOTAL (-9.0%) and continuous sell-off in FORTE (-1.4%) while the Consumer Goods index bucked yesterday’s gains, down 13bps on the back of weak appetite in NIGERIAN BREWERIES (-0.2%) and INTBREW (-4.1%). On the flipside, the Banking index appreciated 15bps against the backdrop of gains in GUARANTY (+0.9%) and ACCESS (+0.2%) which offset losses in ZENITH (-1.1%). The Insurance index added a marginal 2bps solely on account of a rally in NEM (+4.2%). The Industrial Goods index closed flat.
Market Breadth Retreats but Still Positive
Investor sentiment remained soft today as market breadth (advancers/decliners ratio) retreated to 1.2x (from 1.7x recorded yesterday) consequent on 16 advancing stocks against 13 decliners. The best performing stocks were AFRIPRUD (+4.9%), TRANSCORP (+4.3%) and NEM (+4.2%) while AIRSERVICE (-9.5%), TOTAL (-9.0%) and OKOMUOIL (-4.6%) declined the most. Given the current weak macro-economic backdrop and with little to stoke investors’ appetite, we expect market performance to close southwards for the week.