The Nigerian equities market closed the trading day negative on Monday as the All Share Index lost 31bps to close at 37,250.78 points while YTD return moderated to 38.6%. Resultantly, investors lost N36.1bn as market capitalization settled at N12.9tn. Today’s negative Performance is largely attributable to losses in banking stocks- STANBIC (-4.7%), ZENITH (-1.0%), ETI (-3.0%) and ACCESS (-0.6%). However, activity level was mixed as volume traded inched 8.3% higher to settle at 942.7m units while value dipped 5.2% to close at N4.8bn.
Banking Index Drags Performance
Sector performance was mixed as 3 of 5 indices closed in the green, one trended southwards and the other flat. The Banking index emerged the lone loser, down 0.6% owing to price depreciation in ETI (-3.0%), ZENITH (-1.0%) and ACCESS (-0.6%). On the flip side, the Consumer Goods index led gainers, up 0.3% due to upticks in NIGERIAN BREWERIES (+0.9%), DANGSUGAR (+3.3%) and PZ (+3.4%). The insurance index trailed, up 0.2% on account of gains in CONTINSURE (+2.9%) and LAWUNION (+4.9%). Similarly, buying interest in FORTE OIL (+2.5%) pushed the Oil & Gas index 0.1% higher. The Industrial goods index closed the day flat.
Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advancers/decliners ratio) softened to 0.8x from 1.4x recorded the previous Friday as 18 stocks advanced against 34 decliners. The top performing stocks were LAWUNION (+4.9%), NAHCO (+4.9%) and DANGFLOUR (+4.0%) while the worst performers were AIRSERVICE (-4.9%), PORTPAINT (-4.8%) and UPL (-4.7%). Following the negative market performance today, we expect bargain hunting - especially in banking stocks - to buoy market performance in subsequent trading sessions.