The domestic equity market closed yesterday on a negative note as the All Share Index (ASI) plunged 2.3% falling below the 30,000-mark for the first time since May 2017 to close at 29,336.80 points. Market YTD return worsened to -6.7% and market capitalisation decreased by N260.8bn to N10.9tn.
Yesterday’s performance was dragged by price depreciation in DANGCEM (-8.6%), GUARANTY (-2.2%), and ACCESS (-5.9%). Similarly, activity level was mixed as volume traded increased 8.6% to 234.9m units while value traded fell to N2.2bn, lower by 15.9%.
The top traded stocks by volume were DIAMOND (54.7m units), GUARANTY (27.7m units) and ZENITH (25.8m units) while GUARANTY (N865.7m), ZENITH (N526.3m) and FBNH (N152.1bn) were the top traded stocks by value.
Mixed Sector Performance
Today’s performance across sectors was mixed as 3 of 5 indices under our coverage closed in the red. The Industrial Goods index experienced a reversal, down 4.4% following sell offs in DANGCEM (-8.6%). The Insurance and Banking indices were also lower by 3.1% and 0.3% respectively, following losses in CUSTODIAN (-5.9%), NEM (-9.9%), GUARANTY (-2.2%) and ACCESS (-5.9%).
Conversely, the Consumer Goods and Oil & Gas indices ticked up 0.7% and 0.2% respectively, buoyed by gains in FLOURMILL (+4.7%), CADBURY (3.6%), OANDO(+1.2%) and MOBIL (+0.2%).
Investor Sentiment Improves
Investor sentiment, measured as market breadth (advance/decline ratio), strengthened to 0.7x from 0.5x recorded yesterday as 14 stocks advanced against 19 that declined. The best performers were JBERGER (+10.0%), UNILEVER (+9.6%) and UCAP (+6.9%) while UPL (-10.0%), NEM (-9.9%) and CHAMPION (-9.9%) posted the worst losses.
We believe that the lingering bearish sentiment in the local bourse will remain unabated as tensions in the political uncertainty remain heightened.