Stock Market Extends Losses

The equities market extended the negative trend which has persisted since the start of the week to today’s session. At the close of trading, the All Share Index (ASI) lost 0.3% to close at 32,302.32 points whilst YTD return retreated to +20.2%. Consequently, N36.7bn was lost in value as market capitalization settled at N11.1tn. Today’s performance was attributed to declines in ETI (-4.0%), UNILEVER (-4.9%) and FLOURMILL (-9.7%). Nonetheless, activity level improved as volume and value of transactions rose 51.0% and 74.8% to close at 311.4m units and N3.0bn respectively.

Industrial Goods Index Emerges Lone Gainer
Sector performance mirrored the broader index as all indices closed in the red save for the Industrial Goods index which marginally added 2bps on account of price uptick in BERGER (+4.5%). The Consumer Goods index led the losers chart, down 0.9% as investors reacted negatively to FLOURMILL’s (-9.7%) FY:2017 earnings scorecard and sold off on UNILEVER (-4.9%). Flourmill released its FY:2017 financial result yesterday; Revenue grew 53.1% from N342.6bn in FY:2016 to N524.5bn in FY:2017 whilst PAT declined 38.7% from N14.4bn  in FY:2016 to N8.8bn in FY:2017. The Banking index trailed with 0.3% loss on the back of losses in ACCESS (-1.3%) and FIDELITY (-4.7%) while the Oil & Gas index fell 0.2% due to the persistent decline in MOBIL (-0.4%). Similarly, the Insurance index lost 4bps on account of depreciation in AIICO (-4.8%).

Investor Sentiment Remains Weak
Market breadth came in higher, albeit negative as the ratio of advancers to decliners settled at 0.4x (11 gainers against 32 losers). UNITY (+9.8%), FIDSON (+4.8%) and BERGER (+4.5%) led the gainers chart while FLOURMILL (-9.7%), NEIMETH (-8.0%) and TRANSCORP (-6.5%) led the laggards. 
Afrinvest Research, in its dealers' perception note, stated that “the continuous decline in market performance as seen in previous sessions presents an opportunity for bargain hunters to take advantage of badly beaten stocks. Hence, we anticipate a rebound in the equities market in subsequent trading sessions this week.”
 
NASD OTC Exchange Market Activities
In the NASD OTC exchange, two counters traded with total volume and value of transactions closing at 46,026 thousand units and N2.6m respectively. CSCS (+0.2%) closed in the green while WAMCO (-9.2%) closed in the red.

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