Losses in BUACEMENT, MTN, Zenith drag down stock market index

At the close of trade, the domestic equities market posted a negative performance as the benchmark index declined 183bps to close at 40,396.14 points. The bearish performance was driven by losses in BUACEMENT (-5.9%), MTNN (-2.8%) and ZENITH (-4.3%). Consequently, the YTD return fell to 0.3% while market capitalisation decreased by ₦392.8bn to settle at ₦21.1tn. Activity level surged as volume and value traded advanced 119.7% and 265.6% to 465.7m units and ₦5.1bn respectively. The most traded stocks by volume were TRANSCORP (69.2m units), ZENITH (31.7m units) and FCMB (26.6m units) while ZENITH (₦788.3m), NIGERIAN BREWERIES (₦606.5m) and MTNN (₦591.7m) led by value.

Performance across sectors was bearish as 5 of 6 indices under our coverage closed in the red. The Banking and Industrial Goods indices led losers, shedding 3.0% and 2.7% respectively due to sell-offs in ZENITH (-4.3%), GUARANTY (-2.8%), BUACEMENT (-5.9%) and WAPCO (-2.4%). Similarly, the AFR-ICT and Consumer Goods indices fell 1.2% and 0.3% in that order, dragged by price depreciation in MTNN (-2.8%), FLOURMILL (-3.2%) and DANGSUGAR (-1.1%). The Oil & Gas index fell marginally by 3bps following a loss in OANDO (-10.0%). Conversely, the Insurance index was the lone gainer, up 1.6% due to buying interest in CORNERSTONE (+6.8%) and SOVRENIN (+9.1%).

Investor sentiment as measured by market breadth (advance/decline ratio) worsened to 0.4x from the 15.5x recorded previously as 15 stocks advanced against 34 decliners. BOCGAS (+9.7%), NEM (+9.5%) and SOVRENINS (+9.1%) were the best-performing tickers while OANDO (-10.0%), FTNCOCOA (-9.7%) and MAYBAKER (-8.5%) were the only losers. We anticipate sustained profit-taking in the next trading session.

Market Statistics for Tuesday, 5th January 2021