Investors losses continue at the Nigerian Equity market,  ASI down 2.1%  

Shares trading at the Nigerian Stock exchange, sustained sell pressures amidst weak investor appetite weighed negatively on the stock market 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 per cent to settle at 32,466.27 points while YTD loss further moderated to -15.4 per cent. In line with market performance, market capitalisation skimmed N256.1 billion to settle at N11.9 trillion. Activity level also weakened, as volume and value traded trended lower by 31.3 per cent and 37.2 per cent to 212.5 million units and N3.8 billion 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).

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 per cent, 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 per cent. 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 per cent.

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%). Today, 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.

Market Statistics Wednesday, 31st October 2018

Market Cap (N’bn)                                  11,852.7

Market Cap (US$’bn)                                    38.7

NSE All-Share Index                            32,466.27

Daily Performance %                                    (2.1)

Week Performance %                                   0.2

YTD Performance %                                 (15.1)

Daily Volume (Million)                               212.5

Daily Value (N’bn)                                         3.8

Daily Value (US$’m)                                   12.3