Large-Cap Equities Drag Benchmark Index Lower

The All Share index declined 0.7% to close at 25,646.56 points at the end of Tuesday’s trading session as the Nigerian equities market was unable to maintain yesterday’s gaining momentum whilst Investors lost N62.5bn as market capitalization settled at N8.8tn. Today’s negative performance was broadly as a result of losses sustained in Bellwether counters across sectors – DANGCEM (-1.2%), FORTE OIL (-4.2%), WAPCO (-2.8%) and FBNH (-1.5%). Market activity was also synonymous with ASI movement as volume and value traded declined 24.7% and 19.7% to close at 237.8m and N1.4bn.
Bearish Investor Sentiment in Forte Oil Drags Oil & Gas index Lower
The Consumer Goods rose 1.0% on the back of gains in UNILEVER (5.0%), NIGERIAN BREWERIES (+0.7%) and FLOURMILL (6.7%), whilst appreciation in DIAMOND (+9.5%), STERLING (+4.9%) and ZENITH (+0.4%) extended the bullish run in the Banking Index (+0.6%) to the 4th trading session. Continuous selloffs in FORTE OIL (-4.2%) dragged the Oil & Gas index 1.6% lower. The Industrial Goods index also pared 2.4% consequent on the 1.2% and 2.8% decline in sector heavyweights - DANGCEM  and WAPCO  whilst the Insurance index shed 4.4% as MANSARD (-4.4%) drifted further southwards.
Investor Sentiment Broadly Positive on Strong Tractions in Small-cap Stocks
The improved investor sentiment from yesterday was sustained today as market breadth (advancers’/decliners’ ratio) closed at 1.9x on the back 32 gaining stocks against 17 retreating stocks. TIGERBRAND (9.8%), DIAMOND (9.5%) and FLOURMILL (6.8%) led the gainers while UPL (-4.9%), PORTPAINT (-4.8%) and MANSARD (-4.4%) led the laggards. Despite the negative return of the ASI today, the sustained positive market breadth indicates investors are still spotting opportunities in equities, especially in the small/mid cap segments. Yet, we expect market performance to remain soft in the session ahead as the market still remains close to overbought from a relative strength standpoint.