Bulls tighten grip on the NGX stock market… ASI down 40bps

NGX stock trading extended its bearish sentiment as the NGX-ASI fell 40bps to 109,183.93 points following sell pressure on TRANSCORP (-4.4%), FIDELITY (-7.0%), and DANGSUGAR (-5.9%). Consequently, YTD return fell to 6.1% (previously 6.5%), while market capitalisation shed 40bps to N68.6tn. Activity level improved as volume and value traded rose 148.0% and 47.0% to 664.2m units and N13.0bn, respectively. Performance across our coverage sectors was negative as four indices lost, one gained, while the Oil & Gas index closed flat.
Leading the laggards, the Insurance and Consumer Goods indices fell 1.7% respectively following selloffs on MANSARD (-6.7%), LINKASSURE (-9.9%), DANGSUGAR (-5.9%), and NB (-4.7%). Following, the Banking and Industrial Goods indices lost 1.1% and 1bp accordingly, on the back of price downtick in FIDELITY (-7.0%), UBA (-1.9%), and CUTIX (-5.3%). The AFR-ICT index was the lone gainer, up 4bps due to buy interest in ETRANZACT (+7.9%) and DAAR (+4.7%).
Investor sentiment, as measured by market breadth, improved to -0.15x (previously: 0.01x) as 23 stocks gained, 34 lost while 71 closed flat. Tomorrow, we anticipate the bearish momentum to linger, driven by worsening investor sentiment.