In line with our (Afrinvest) expectation, the domestic equities market gained 33bps in Tuesday’s session to settle at 32,154.03 points due to bargain hunting in bellwethers NIGERIAN BREWERIES (+1.3%), NESTLE (+3.6%), and UBA (+4.0%). As a result, market capitalisation increased by N38.6bn to N11.7tn while YTD loss moderated to -15.9%. Activity level was however mixed as volume traded fell 5.0% to 149.7m units while value traded appreciated 59.6% to N2.8bn. The top traded stocks by volume were FIDELITYBK (22.0m), REGALINS (19.4m) and GUARANTY (N11.8m) while the top traded stocks by value were NESTLE (N723.8m), GUARANTY (N447.1m) and SEPLAT (N344.3m).
Bearish Sector Performance
Performance across sectors was largely bearish as 3 of 5 indices under our coverage closed in the red. The Insurance index depreciated the most, down 1.1%, following sell-offs in in NEM (-4.4%) and MBENEFIT (-10.0%). Similarly, the Banking and the Oil & Gas indices trailed, as they shed 0.5% and 0.1% respectively, due to sell pressures in GUARANTY (-1.8%), ACCESS (-1.3%), ETI (-0.3%) and OANDO (-1.0%). On the flip side, the Consumer Goods and Industrial indices appreciated, up 1.8% and 0.4% respectively due to gains in NESTLE (+3.6%), NIGERIAN BREWERIES (+1.3%) and CCNN (+9.8%).
Investor Sentiment Weakened
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.6x from 0.7x as 14 stocks appreciated against 23 decliners. CCNN (+9.8%), NAHCO (+5.3%) and DANGSUGAR (+4.3%) were the best performing stocks while the worst performing stocks were MBENEFIT (-10.0%), FIDSON (-10.0%) and UAC-PROP (-10.0%). Today, we observed buying interests in some under-priced stocks and we expect this trend to continue tomorrow. However, despite the rally in today's trading session, we maintain our bearish outlook over the near term.