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DANGCEM Drags Benchmark Index … NSE ASI Down 1.2%

The positive performance recorded on the last trading day of the previous week reversed today as the benchmark index was dragged by sell offs in DANGCEM (-4.2%).

Consequently, the All Share Index lost 1.2% to settle at 37,980.67 points while YTD return reduced to 41.2%. Ex- DANGCEM the ASI would have appreciated. Investors lost N162.1bn as market capitalisation fell to N13.5tn. Similarly, activity level softened as volume and value traded declined 52.5% and 58.4% to 202.0m units and N3.8bn respectively.

Banking Index Emerges Lone Gainer
Performance across sectors was largely bearish as 3 of 5 indices trended southwards, one closed in the green and the other flat. The Industrial Goods index led laggards, down 2.0% consequent on sell offs in DANGCEM (-4.2%).

The Consumer Goods index trailed, falling 0.7% on account of price depreciations in INTBREW (-5.0%), FLOURMILL (-2.7%) and NASCON (-4.9%) while losses in NEM (-2.8%) and AIICO (-3.8%) dragged the Insurance index 0.5% lower.

On the flipside, the Banking index emerged the lone gainer, up 0.4% against the backdrop of price appreciations in UBN (+4.9%), GUARANTY (+0.5%) and UBA (+0.8%). The Oil & Gas Index closed flat.

Investor Sentiment Strengthens
Investor sentiment measured by market breadth (advancers/decliners ratio) improved, albeit still negative, to 0.9x from 0.4x recorded the previous Friday as 17 stocks advanced against 18 decliners. The top performing stocks today were PRESCO (+8.8%), UACPROP (+5.7%) and CHAMPION (+5.0%) while the worst performers were CADBURY (-5.9%), ETERNA (-5.0%) and INTBREW (-5.0%).

Despite today’s negative performance, market breadth strengthened. Hence, we expect a rebound in subsequent trading sessions as investors take position in anticipation of year-end rally.

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