Local Bourse turns Southwards

The domestic bourse closed on a negative note on Wednesday as the All Share Index fell 1.5% to settle at 42,952.70 points while YTD return moderated to 12.3%. Accordingly, investors lost N236.1bn in value as market capitalisation declined to N15.4tn. The bearish performance was majorly due to sell offs in market bellwethers- DANGCEM (-3.6%), NIGERIAN BREWERIES (-3.4%) and GUARANTY (-1.9%). Consequently, activity level weakened as volume and value traded fell 39.3% and 13.1% to 270.3m units and N5.2bn respectively. The top trades by volume were ZENITH (64.6m), JAPAUL OIL (17.5m) and STERLING (16.9m) while ZENITH (N2.0bn), DANGCEM (N889.8m) and INTBREW (N375.9m) were the top traded stocks by value.

Negative Sector Performance
Performance across sectors was largely negative as all indices trended southwards save for the Insurance index which advanced 0.4% following price appreciation in HMARKINS (+6.1%), NEM (+5.0%) and LINKASSURE (+3.5%). On the flipside, the Industrial Goods index led laggards down 1.8% on the back of losses recorded in DANGCEM (-3.6%) and CCNN (-3.3%). In the same vein, the Banking index shed 0.9% as profit taking in GUARANTY (-1.9%) and ACCESS (-2.3%) weighed negatively on performance. Also, the Consumer Goods index declined 0.7% following sell pressure in NIGERIAN BREWERIES (-3.4%) and NESTLE (-0.4%) while losses in TOTAL (-3.9%) dragged the Oil & Gas index down 0.5%.

Investor Sentiment Turns Positive
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened slightly to 1.1x from 0.9x recorded the previous session consequent on 26 stocks that advanced against 23 decliners. The top performing stocks were ETERNA (+10.2%), JAPAUL OIL (+8.0%) and HMARKINS (+6.1%) while UNITYBNK (-9.2%), WAPIC (-6.5%) and UNIC (-5.0%) were the worst performers. Although the market closed in the red, we anticipate renewed buying interest in the near term, in anticipation of positive corporate earnings releases.

In the NASD OTC Market, the SDNIPCOPLC, SDCAPDBETO, SDCSCSPLC, SDAFRILAND and SDFCWAMCO were the only stocks that traded, with a total volume and value of 10,985 units and N1,036,957 respectively.

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