Bearish performance persists at NSE as ASI down 1.3%

The equities market performed bearish at the close of trade today despite our expectations for a rebound. The All Share Index (ASI) fell 1.3 per cent to 34,617.12 points, primarily due to losses in DANGCEM (-3.7%), UBA (-6.2%) and CUSTODIAN (-8.1%) as sell-pressure was observed across board. As a result, YTD loss dipped to -9.5 per cent while market capitalisation declined further by N167.1 billion to N12.6 trillion. Activity level however, advanced as volume and value traded increased 13.5 per cent and 6.5 per cent to 237.8 million units and N3.1 billion respectively. The most traded stocks by volume were UBA (36.5m), GUARANTY (23.5m) and FBNH (21.0m) while GUARANTY (N892.4m), INTBREW (N461.8bn) and ZENITH (N398.4bn) led by value.

Of the 5 indices we track, the Oil & Gas index was the only gainer, up 0.5 per cent due to price appreciation in ETERNA (+2.4%). On the other hand, the Industrial Goods index led the bearish sector performance, shedding 2.1% on the back of sell-offs in DANGCEM (-3.7%). In the same vein, losses in UBA (-6.2%), ZENITH (-0.2%), CUSTODIAN (-8.1%) and CONTINSURE (-8.5%) dragged the Banking and Insurance indices 0.8 per cent and 0.3 per cent lower respectively. The Consumer Goods  index also fell, down 0.1% on account of sell pressures in NASCON (-1.5%).

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened- albeit still weak – to 0.6x from 0.4x recorded the previous day as 17 stocks advanced against 29 that declined. The best performers were EQUITYASSURE (+10.0%), PORTPOINT (+9.8%) and LINKASSURE (+8.8%) while AIRSERVICE (-10.0%), NEIMETH (-9.6%) and SKYE (-8.8%) were the worst performing stocks. Although the bearish trend persisted today, we believe the market may rebound tomorrow, the close of the week. Our point is hinged on the improving investor sentiment observed today.

Market Statistics Thursday, 16th August 2018

Market Cap (N’bn)                             12,638.4

Market Cap (US$’bn)                               41.3

NSE All-Share Index                        34,617.12

Daily Performance %                               (1.3)

Week Performance %                              (4.5)

YTD Performance %                                (9.5)

Daily Volume (Million)                           237.8

Daily Value (N’bn)                                     3.1

Daily Value (US$’m)                                10.1