Sell pressure persists at Nigerian stock market, ASI down 2.0%

The domestic equities market extended losses for the third consecutive trading session due to sell-offs in DANGCEM (-7.4%), ZENITH (-3.1%), and UBA (-6.9%). As a result, the NSE All-Share Index dipped 196bps to 40,696.01 points, YTD return fell to 1.1% while market capitalisation declined by ₦425.9bn to settle at ₦21.3tn. Activity level improved as volume and value traded rose 19.9% and 38.7% respectively to 366.9m units and ₦5.5bn. The most traded stocks by volume were ZENITH (43.7m units), FBNH (40.0m units) and GUARANTY (36.0m units) while GUARANTY (₦1.2bn), ZENITH (₦1.1bn) and MTNN (₦846.2m) led by value.

Performance across sectors under our coverage was largely bearish as 5 of 6 indices closed southward, save the Oil & Gas index which closed flat. The Industrial Goods and Banking indices lost 3.7% and 3.4% respectively due to sell-offs in DANGCEM (-7.4%), WAPCO (-2.6%), ZENITH (-3.1%) and GUARANTY (-1.5%). Similarly, the Insurance and Consumer Goods indices fell 1.2% and 0.4% respectively following sell pressures in AIICO (-6.7%), LINKASSURE (-9.1%), FLOURMILL (-5.7%) and DANGSUGAR (-2.3%). Lastly, the AFR-ICT index declined 2bps on the back of a price decline in ETRANZACT (-10.0%).

Investor sentiment as measured by market breadth (advance/decline ratio) worsened to 0.4x from the 1.0x recorded previously as 13 stocks gained against 36 losers. NIGERINS (+10.0%), CHAMPION (+9.8%) and WAPIC (+7.4%) were the top gainers while REGALINS (-10.0%), CAP (-10.0%) and FIDSON (-10.0%) were the top losers. In the next trading session, we expect the equities market to close in the red. However, there is room for bargain hunting opportunities.

Market Statistics for Wednesday, 10th February 2021