Banking stocks drag market performance… ASI down 14bps

At the close of trade, price declines in ZENITH (-2.1%), GUARANTY (-1.1%) and ACCESS (-1.7%) dragged the All-Share Index down 14bps to 21,300.47. Consequently, YTD return settled at -20.6% while market capitalisation decreased ₦15.8bn to ₦11.1tn. Activity level declined as volume and value traded fell 9.6% and 10.8% to 422.0m units and ₦1.7bn respectively. The most active stocks by volume were STERLING (303.6m units), ZENITH (29.7m units) and GUARANTY (16.9m units) while ZENITH (₦350.4m), STERLING (₦348.7m) and GUARANTY (₦301.2m) led the value chart.  

Sector performance was mixed as 2 indices gained, 2 lost while 2 closed flat. The Insurance and Consumer Goods indices posted gains, up 1.6% and 0.5% respectively due to price appreciation in NEM (+9.5%), CORNERSTONE (+3.5%), UNILEVER (+4.8%) and FLOURMILL (+2.2%). Conversely, the  Banking and Industrial Goods indices depreciated 1.1% and 0.1% respectively following losses in ZENITH (-2.1%), GUARANTY (-1.1%) and WAPCO (-1.1%). Finally, the Oil & Gas and AFR-ICT indices closed flat. 

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 0.8x from the 0.7x recorded in the previous trading session as 9 stocks advanced relative to 11 decliners. The best performers were GLAXOSMITH (+10.0%), MAYBAYER (+9.7%) and NEM (+9.5%) while JAIZBANK (-9.4%), IKEJAHOTEL (-9.1%) and COURTVILLE (-4.8%) led the laggards. We expect the bearish sentiment to continue however, there exist bargain hunting opportunities in the equities market.

Market Statistics for Tuesday, 31st March 2020 

Source: Afrinvest