Wednesday, July 2, 2025
23.4 C
Lagos

Equities Market Maintains Negative Momentum…NSE ASI Down 49bps

In line with expectation, the bearish run of the equities market from the start of the week persisted as the All Share Index (ASI) declined by 49bps to close at 43,326.89 points while YTD return contracted to 13.3%. Consequently, investors lost N75.8bn as market capitalization fell to N15.5tn.

Yesterday’s drag was largely on account of sustained sell-offs across board with NESTLE (-5.0%), NIGERIAN BREWERIES (-3.2%) and FBNH (-1.6%) weighing the most on performance. Meanwhile, activity level improved as volume and value traded surged 336.9% and 64.0% to 2.2bn units and N7.4bn respectively.

Mixed Sector Performance 
Sector Performance was mixed as 3 of 5 indices under our coverage closed in the red while 2 trended northwards. Leading the losers’ chart was the Consumer Goods index which fell 2.0% following sell pressure in NESTLE (-5.0%) and NIGERIAN BREWERIES (-3.2%).

The Insurance index trailed, down 0.6% on the back of price depreciation in WAPIC (-4.4%) and AIICO (-4.8%). Also, the Banking index fell 0.1% as UBN (-2.4%), DIAMOND (-4.8%) and FIDELITY (-3.2%) all closed southwards.

On the flip side, the Industrial Goods index trended 0.3% higher, buoyed by uptick in DANGCEM (+0.4%) while the Oil & Gas index rose 0.6% due to gains in FORTE (+4.9%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) improved to 0.7x from 0.5x recorded the previous session consequent on 17 stocks advancing against 26 decliners. The top performing stocks were UNITY (+9.4%), FORTE (+4.9%) and ROYALEX (+4.8%) while SKYE (-8.9%), HMARKINS (-5.3%) and NESTLE (-5.0%) were the worst performers.

Whilst the bearish performance was in line with expectation, improving market breadth and turnover suggest some investors are taking advantage on the week-long sell off to buy into stocks with attractive valuation. Hence, we expect the ‘Buy the Dip” sentiment to buoy performance in subsequent sessions.
In the NASD OTC Exchange, total Volume and value traded stood at 801,424 units and N15.2m respectively. The SDAFRILAND, SDCSCSPLC and SDNDEP were the only instruments that traded.

spot_img
spot_img
spot_img

Hot this week

Stanbic IBTC Bank Nigeria PMI: Output Growth Slows but Business Confidence Rises Sharply

The Nigerian private sector remained in growth territory as...

NIA: Insurance Week Designed to Boost Industry Awareness in Nigeria

Mr. Kunle Ahmed Chairman Nigerian Insurers Association (NIA) The Nigerian Insurers Association...

NAICOM Chief: The Future of Nigeria Depends on How We Manage Risks

Keynote Address by Mr. Olusegun Ayo Omosehin, Commissioner for...

SEC Canvasses Advanced Financial Inclusion by 2030

The Securities and Exchange Commission (SEC) has stressed the...

NCDMB to Champion “Nigeria First” Policy in Oil and Gas Sector

The Nigerian Content Development and Monitoring Board (NCDMB) has...

Topics

GTCO: Market Value Hits N1.58tn on Investor, Market Confidence

GTCO Plc has started clinging near its 52-week high...

Brokers Target Generation of 90% Premium in Insurance Sector

    L-R: Mr. Atanda Olatokunbo, Controller, Internal Audit & Compliance,...

CTO Tasks Africa on Digital Broadcasting Switchover

In his opening address at the Digital Broadcasting Africa...

NCC Disowns Fake LinkedIn Account of Umar Danbatta  

The Nigerian Communications Commission (NCC) has been made aware...

Headline Inflation Accelerates in April; Rises to 22-month High

The MPC concluded its third seating for the year with all policy rates left unchanged save the Cash Reserve Requirement (CRR) which was harmonized to 31.0%. This was in contrast to the previous 20.0% on private sector deposit and 75.0% public sector deposit (35.0% effective rate as at February 2015). We expect the equities market to react positively to this, given its implied impact on interest income of banking tickers going forward.
spot_img

Related Articles

Popular Categories

spot_imgspot_img