3-Day bearish run pulls market YTD loss to 2018-low… NSE ASI down 0.6%

The negative performance of the domestic bourse extended into today’s session dragging the NSE All Share Index (ASI) 0.6 per cent to 36,748.18 points – lowest since November 2017 – while YTD loss worsened to 3.9 per cent. As a result, investors lost N78.1 billion as market capitalisation fell to N13.3 trillion (lowest since N13.2 trillion 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 per cent and 31.3 per cent to 181.2 million units and N1.6 billion 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.

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 per cent, 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 per cent and 0.5 per cent, 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 per cent and 1.1 per cent 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 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. Today’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.

Market Statistics Wednesday, 18th July 2018

Market Cap (N’bn)                         13,312.0

Market Cap (US$’bn)                           43.5

NSE All-Share Index                    37,748.18

Daily Performance %                           (0.6)

Week Performance %                          (1.4)

YTD Performance %                             (3.9)

Daily Volume (Million)                         181.2

Daily Value (N’bn)                                  1.6

Daily Value (US$’m)                              5.4