The local bourse opened the week on a negative note as the All Share Index shed 4bps to close at 41,454.30 points while YTD return closed at 8.4%. Today’s bearish performance was largely due to profit taking in GUARANTY (-3.4%), UNILEVER (-5.0%) and SEPLAT (-3.0%). Consequently, market capitalisation declined to N15.0tn as investors lost N5.9bn in value. In the same vein, activity level weakened as volume and value traded fell 32.2% and 24.1% to 379.9m units and N5.1bn respectively. ACCESS (77.9m), ZENITH (58.4m) and UBA (44.0m) were the top traded stocks by volume while ZENITH (N1.8bn), ACCESS (N885.1m) and NESTLE (N548.3m) were the top traded stocks by value.
Bearish Sector Performance
Performance across sectors was largely bearish as 3 of 5 indices trended southwards, while 2 closed in the green. The Oil & Gas index led laggards, down 2.5% following price depreciation in SEPLAT (-3.0%). The Industrial Goods index trailed, shedding 2.0% due to sell offs in WAPCO (-4.0%) followed by the Banking index which fell 0.4% on the back of losses in GUARANTY (-3.4%) and DIAMOND (-4.7%). On the flipside, the Insurance and Consumer Goods indices gained 1.3% and 0.3% respectively driven by buying interest in NEM (+2.2%), NIGERIAN BREWERIES (+1.9%), NESTLE (+0.2%) and DANGSUGAR (+0.7%).
Investor Sentiment Strengthens
Investor sentiment measured by market breath (advance/decline) ratio improved to 2.0x from 0.7x recorded the preceding Friday as 34 stocks advanced relative to 17 stocks that declined. The top performing stocks were GLAXOSMITH (+10.0%), CUSTODIAN (+10.0%) and MULTIVERSE (+9.5%) while FORTE (-9.1%), ROYALEX (-6.1%) and UNILEVER (-5.0%) were the worst performing stocks. Despite the negative performance today, investor sentiment strengthened, thus we anticipate a rebound in market performance in subsequent sessions as investors continue to seek for bargain opportunities.