Banking Stocks Drag Market Performance… ASI down 0.5%

The domestic equities market closed negative at today’s trading session as the benchmark index declined by 0.5% to 34,643.65 points, following sell pressures in GUARANTY (-3.2%), STANBIC (-4.1%) and ZENITH (-2.4%). Consequently, investors lost ₦91.1bn as market capitalisation fell to ₦18.1tn while YTD return moderated to 29.1%. Activity level declined as volume and value traded fell by 44.8% and 57.8% to 364.9m units and ₦3.5bn respectively. The most traded stocks by volume were TRANSCORP (50.7m units), FBNH (38.6m units) and ACCESS (25.9m units) while ZENITH (₦535.7m), STANBIC (₦519.3m) and FBNH (₦292.4m) led by value.

Performance across sectors was mixed as 3 of the 6 indicators under our coverage closed in the green, while the AFR-ICT and Oil & Gas indices were unchanged. The Insurance, Consumer Goods and Industrial Goods indices gained, up 1.5%, 0.4% and 0.3% respectively, due to price appreciation in MANSARD (+3.1%), NIGERIAN BREWERIES (+7.4%) and WAPCO (+9.6%). However, sell-offs in GUARANTY (-3.2%) and ZENITH (-2.4%) drove the Banking index lower by 2.7%.

Investor sentiment as measured by market breadth (advance/decline ratio) fell to 0.6x from the 4.8x recorded previously as 19 stocks gained against the 28 that declined. BOCGAS (+9.9%), ETERNA (+9.9%) and REDSTAREX (+9.8%) led the top gainers while PRESCO (-10.0%), FCMB (-9.9%) and LINKASSURE (-9.1%) led  the decliners. We expect the market to close negative this week on sustained profit-taking.

Market Statistics for Thursday, 19th November 2020