Bears sustain pressure on Nigerian Stock Market… ASI down 120bps

The local bourse sustained its downtrend as the All-Share Index dropped 1.2% to 25,816.57 points due to the losses in NESTLE (-10.0%), GUARANTY (-4.6%) and WAPCO (-10.0%). Consequently, the YTD return declined further to -3.8% while investors shaved off ₦218.3bn as market capitalisation fell to ₦13.4tn. Activity level declined as volume and value traded fell 21.9% and 2.7% respectively to 325.3m units and ₦6.0bn. The most actively traded stocks by volume were ZENITH (47.5m units), GUARANTY (35.8m units) and FCMB (23.5m units) while GUARANTY (₦1.1bn), ZENITH (₦952.8m) and MTNN (₦159.7m) led by value.

Sector performance was bearish as 3 of 5 indices that we cover under-performed. The Consumer Goods and Banking indices led the laggards, down 5.2% and 3.7% respectively due to sell-offs in NESTLE (-10.0%), GUARANTY (-4.6%) and ZENITH (-2.8%) . Similarly, the Industrial Goods index lost 1.2%, on the back of price declines in WAPCO (-10.0%) and CAP (-10.0%). Conversely, the Insurance index gained 0.3% on account of buying interest in AIICO (+7.8%) and LAWUNION (+10.0%) while the Oil & Gas index was flat.

Investor sentiment as measured by market breadth (advance/decline ratio) rose to 0.4x from the 0.1x recorded in the previous trading session as 9 stocks advanced relative to the 24 that declined. The best performers were LAWUNION (+10.0%), HONYFLOUR (+9.3%) and UPDCREIT (+8.1%) while UNILEVER (-10.0%), WAPCO (-10.0%) and NESTLE (-10.0%) led the laggards. We expect the bearish sentiment to be sustained in the near term, although the market presents opportunity for bargain hunting.

Corporate Action
MTN Nigeria Communications Plc (Audited FY:2019): Revenue rose 12.6% Y-o-Y to ₦1.2tn; Furthermore, PAT grew 38.7% to ₦202.1bn from 2018, announces dividend of  ₦4.97 per 2 Kobo ordinary share.

United Bank for Africa Plc (Audited FY:2019): Gross Earnings climbed 13.3% Y-o-Y to ₦559.8bn; Meanwhile, PAT grew 13.3% to ₦89.1bn from 2018. Proposed dividend 80k per share.

Nestle Nigeria Plc (Audited FY:2019): Revenue leaped 6.7% Y-o-Y to ₦284.0bn; Furthermore, PAT jumped 6.2% to ₦45.7bn from 2018. 

Ardova Plc (formerly Forte Oil Plc) – (Audited FY:2019): Revenue increased 31.1% Y-o-Y to ₦176.6bn;  while PAT surged 520.0% to ₦3.9bn from 2018.

Guaranty Trust Bank Plc (Audited FY:2019): Gross Earnings increased 0.1% Y-o-Y to ₦435.3bn;  while PAT rose 6.6% to ₦196.8bn from 2018, proposed final dividend 250k per share.

Market Statistics for Monday, 2nd March 2020 

Source: Afrinvest