The Nigerian bourse sustained bearish momentum on Tuesday as weakened sentiment in DANGCEM (-1.1%), ZENITH (-2.3%) and FBNH (-2.9%) pulled the All Share Index 0.7% lower, closing at 27,503.81 points. Also, market capitalization declined N69.8bn to close at N9.4tn while YTD loss worsened to -4.0%. However, activity level was mixed as volume traded declined 9.4% while value traded rose 20.1% to 176.8m units and N1.9bn respectively.
Sectors Indices Close in Red
Stocks within the Insurance Index were the outliers in the broad selling pressure witnessed today as the index closed flat. The Banking Index declined the most, down 1.3% on losses in ZENITH (-2.3%) and FBNH (-2.9%). The Oil & Gas index (-1.0%) followed closely due to sell-offs in FORTE (-2.8%). Similarly, the Industrial and Consumer Goods indices were down 0.7% and 4bps respectively on account of losses in DANGCEM (-1.1%), CADBURY (-4.1) and CHAMPION (-4.7%).
Investor Sentiment Weakens
Investor sentiment declined as market breadth settled at 0.4x from 0.8x yesterday after 10 stocks advanced while 25 declined. The top gainers were UACN (+4.9%), MAYBAKER (+2.4%) and ETERNA (+2.2%) while PORTPAINT (-9.1%), UBN (-5.0%) and AFRIPRUD (-4.8%) were the worst performers. Performance in the market is likely to stay soft in the absence of cheery news but we believe sustained sell pressure may trigger bargain hunting in the short term.