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Tuesday, March 21, 2023

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Local Bourse Extends Losses into 2nd Consecutive Session

In today’s session, sustained sell pressures amidst weak investor appetite weighed negatively on the local bourse as it extended losses into the second consecutive session. Sell pressures in DANGCEM (-3.2%), STANBIC (-10,0%), and NIGERIAN BREWERIES (-6.4%) dragged the All Share Index (ASI) southwards by 2.1% to settle at 32,466.27 points while YTD loss further moderated to -15.4%.

In line with market performance, market capitalisation skimmed N256.1bn to settle at N11.9tn. Activity level also weakened, as volume and value traded trended lower by 31.3% and 37.2% to 212.5m units and N3.8bn respectively.

The top traded stocks by volume were GUARANTY (43.6m), ZENITH (29.6m), and FCMB (22.1m) while the top traded stocks by value were GUARANTY (N1.6bn), ZENITH (N695.8m) and NIGERIAN BREWERIES (N572.8m).

Oil &Gas Index Emerges as Lone Gainer
Performance across sectors was largely bearish as 4 of 5 indices under our coverage trended southwards. The Industrial index depreciated the most, down 2.0%, following sell-offs in DANGCEM (-3.2%).

The  Consumer Goods and Banking indices trailed in the negative trend, as they shed 1.6% and 0.9% respectively, due to sell pressures in NIGERIAN BREWERIES (-6.4%), GUINNESS (-5.2%), STANBIC (-10.0%), and GUARANTY (-1.3%).

Losses in WAPIC (-7.0%) and NEM (-1.0%) dragged the Insurance index lower by 0.4%. On the flip side, the Oil & Gas index closed as the lone gainer due to gains in OANDO (+5.0%) and FO (+1.9%) on the back of positive 9M:2018 results which drove the index higher by 0.7%.

Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.5x from 0.7x recorded yesterday as 15 stocks appreciated against 30 decliners. REGALINS (+10.0%), INTBREW (+10.0%) and AIRSERVICE (+10.0%) were the best performing stocks while the worst performing stocks were UNIONDAC (-10.0%%), STANBIC (-10.0%) and DANGFLOUR (-9.8%).

Yesterday, we noticed sustained sell pressures on prior advancers indicating investor profit taking. We expect the bearish sentiment to remain elevated till close of the week although we advise cautious optimism.

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