Selling Pressure Drags Market Performance Down

The equities market opened the week on a bearish note as further sell pressure on DANGCEM (-0.6%) dragged the All Share Index 0.2% lower to close at 27,707.12 points. Market Capitalization also reduced by N17.0bn to settle at N9.5tn while YTD loss worsened to -3.3%. Today’s bearish close was further driven by depreciations in NIGERIAN BREWRIES (-0.7%) and PZ (-5.0%). Market activity waned as volume and value traded declined 37.4% and 53.4% to settle at 195.0m units and N1.6bn.

Mixed Performance across Sectors
Performance across sector was mixed as the Banking and Oil & Gas indices rose 0.7% and 0.2% on gains in UBA (+3.7%), ZENITH (+1.0%) and OANDO (+2.1%).  On the other hand, the Consumer Goods index (-0.5%) was dragged by depreciation in PZ (-5.0%), INTBREW (-3.9%) and NIGERIAN BREWERIES (-0.7%). The Insurance index also trailed, down 0.4% on the back of losses in NEM (-4.8%) and AIICO (-4.6%). Similarly, Industrial Goods index slid 0.3% against the backdrop of losses in DANGCEM (-0.6%).

Investor Sentiment Declines
Investor Sentiment weakened as market breadth - advancers/decliners ratio- declined to 0.8x (from 1.8x on Friday) on account of 13 stocks that advanced against 17 that declined. The best performing stocks were MAYBAKER (+5.0%), CUTIX (+4.7%) and DIAMOND (+4.5%) while PZ (-5.0%), NEM (-4.8%) and AIICO (-4.6%) were the worst performing stocks. Market performance today was dictated by further sell offs in DANGCEM which rallied significantly last week following its decision to hike cement prices. We expect the market to trade sideways in the next trading session.

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