Losses in Bellwethers drag Stock Market performance… ASI Down 35bps

Today, market sustained its downtrend as declines in bellwethers dragged market performance south. Consequently, the ASI fell by 35bps to close at 26,790.00 points. The bearish outcome was due to losses in FBNH (-6.5%), ACCESS (-3.8%) and DANGCEM (-0.3%). Furthermore, YTD loss worsened to -14.8% while market capitalisation fell N72.0bn to N12.9tn. Activity level waned as volume and value traded fell 9.6% and 52.2% to 189.9m units and N1.5bn respectively. The most traded stocks by value were TRANSCORP (26.3m units), ZENITH (22.5m units) and CHAMS (18.9m units) while ZENITH (N416.4m), GUARANTY (N207.1m) and MTNN (N120.3m) led by value.

Sector Performance was largely bearish as 4 of 6 indices under our coverage lost. The Insurance and AFR-ICT indices gained following buying intertest in WAPIC (+8.6%), AIICO (+2.9%), MANSARD (+1.8%) and AIRTELAFRI (+3bps). On the flip side, the Oil & Gas index topped laggards, losing 1.1% on the back of a price decline in OANDO (-9.1%) while sell-offs in ACCESS (-3.8%), STERLING (-3.5%) and CADBURY (-8.2%) dragged the Banking and Consumer Goods indices down 0.5% and 0.2% respectively. Similarly, the Industrial Goods index declined 8bps due to losses in DANGCEM (-0.7%). Investor sentiment as measured by market breadth (advance/decline ratio) fell to 0.7x from 1.0x recorded in the previous trading session as 19 stocks gained against 26 losers. The top gainers were LIVESTOCK (+10.0%), AGLEVENT (+10.0%) and NEIMETH (+9.0%) while CHIPLC (-10.0%), GLAXOSMITH (-9.5%) and OANDO (-9.1%) led losers. We expect a mixed performance for the rest of the week.

Market Statistics for Wednesday, 27th November, 2019 

Source: Afrinvest