The negative performance of the domestic bourse extended into yesterday’s session dragging the NSE All Share Index (ASI) 0.6% to 36,748.18 points – lowest since November 2017 – while YTD loss worsened to 3.9%.
As a result, investors lost N78.1bn as market capitalization fell to N13.3tn (lowest since N13.2tn in 4th Dec, 2017). Sell-offs in GUARANTY (-5.1%), FBNH (-9.8%) and ETI (-1.9%) pulled the benchmark index lower. Similarly, activity level waned as volume and value traded fell 11.0% and 31.3% to 181.2m units and N1.6bn respectively.
The most traded stocks by volume were TRANSCORP(16.8m), ZENITH (15.2m) and FIDELITY (14.9m) while ZENITH (N361.7m), GUARANTY(N225.8m) and NESTLE (N117.4m) were the most traded stocks by value.
Mixed Sector Performance
Performance across sectors was mixed as 3 of 5 indices we track closed in the red. The Banking index was the worst performer, down 2.0%, due to losses in GUARANTY (-5.1%), ETI (-1.9%) and WEMA (-8.8%). Similarly, the Oil & Gas and Industrial Goods indices fell 1.2% and 0.5%, following sell-offs in OANDO (-9.5%) and WAPCO (-1.5%) respectively.
On the flip side, the Insurance and Consumer Goods indices rose 1.3% and 1.1% respectively, on the back of gains in CONTINSURE (+10.0%), LINKASSURE (+9.0%),INTBREW (+8.1%), PZ (+9.7%) and DANGSUGAR (+2.0%).
Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 0.9x from 0.4x recorded in the prior session as 20 stocks advanced relative to 23 decliners.
Yesterday’s top gainers were CONTINSURE (+10.0%), PZ (+9.7%) and INTBREW (+9.3%) while FBNH (-9.8%), OANDO (-9.5%) and WEMA (-8.8%) were the worst performing stocks. The relative strength index of the local bourse currently stands at 30.2 points indicating the market has reached the oversold region.
Irrespective of this reading, we expect market bearish trend to continue tomorrow. Nonetheless, we do not rule out the possibility of a rebound in the near term as investors respond to the incoming H1:2018 earnings results.