Bears kickstart NGX trading Week… ASI down 0.5%

The local bourse resumed from the holidays on a negative note as selloffs in DANGCEM (-6.7%), MTNN (-2.9%), and ACCESSCORP (-4.7%) pulled the NGX-ASI down by 0.5% to 114,017.48 points. As a result, TD return declined to 10.8% (previously 11.4%), while market capitalisation declined 0.5% to M71.9tn. Likewise, activity level faltered as volume and value traded dipped 55.4% and 43.6% to 652.6m units and ef18.9bn, respectively.
Performance across our coverage sectors was negatively skewed as four indices lost, while the other two gained. Leading the laggards, the Oil & Gas and AFR-ICT indices declined 2.8% and 1.2% respectively due to price depreciation in ARADEL (-9.1%), MTNN (-2.9%) and CHAMS (-0.9%). Trailing, sell pressure on DANGCEM (-6.7%), BETAGLASS (-9.7%), WAPIC (-7.4%) and AlICO (-0.6%) pulled the Industrial Goods and Insurance indices down 60bps and 14bps, respectively. Conversely, the Consumer Goods and Banking indices rose 2.6% and 0.3% respectively, due to buy interest in BUAFOODS (+4.3%), NB (+3.6%), GTCO (+1.6%), and UBA
Investor sentiment, as measured by market breadth, improved to 0.14x from 0.07x in the prior session as 35 stocks advanced, 25 declined, while 66 closed flat. Tomororrow, we expect a bearish outing owing to extended profit-taking activities.