Investors suffer loses as Nigerian Stock market capitalisation drops by N41.3bn

We saw bearish sentiment in the domestic bourse today as the benchmark index declined 19bps to 40,494.35 points on the back of sell-offs in STANBIC (-4.4%), NIGERIAN BREWERIES (-3.3%), and ZENITH (-0.6%). Consequently, the YTD return declined to 0.6% while market capitalisation inched lower by ₦41.3bn to settle at ₦21.2tn. Activity level improved as volume and value traded advanced 72.8% and 166.3% respectively to 356.4m units and ₦5.8bn. The most traded stocks by volume were GUARANTY (46.2m units), FBNH (35.3m units) and DANGSUGAR (26.8m units) while GUARANTY (₦1.4bn), SEPLAT (₦1.2bn) and ZENITH (₦652.6m) led by value.

Performance across sectors was mixed as 3 of 6 indices under our coverage closed lower. The Insurance and Consumer Goods indices lost the most, down 1.5% and 0.5% respectively due to declines in WAPIC (-8.3%), CORNERST (-10.0%) and NIGERIAN BREWERIES (-3.3%). Similarly, the Banking index inched lower by 0.3% as a result of losses in STANBIC (-4.4%) and ZENITH (-0.6%). On the flip side, the Oil & Gas and Industrial Goods indices also appreciated 1.1% and 1bp respectively as SEPLAT (+0.8%) and CAP (+5.6%) ticked higher. The AFR-ICT index closed flat.

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.1x from the 2.3x recorded previously as 22 stocks gained against 20 losers. LEARNAFRICA (+9.3%), ARDOVA (+9.1%) and MULTIVERSE (+8.3%) were the top gainers while CORNERST (-10.0%), UPDCREIT (-10.0%) and CHIPLC (-9.5%) were the top losers. We believe bargain hunting would boost the performance of the market this week as prices remain attractive.

Market Statistics for Tuesday, 16th February 2021