Nigerian Stock market extends loss… ASI down 0.6%

Sell pressures in MTNN (-2.9%), ACCESS (-3.6%), and STANBIC (-1.0%) dragged the All-Share Index lower by 57bps to settle at 39,045.13 points. Consequently, YTD loss worsened to -3.0% and investors lost ₦116.1bn as market capitalisation decreased to ₦20.4tn. Trading activity was mixed as volume traded rose 3.3% to 347.2m units while value traded fell 14.2% to ₦2.8bn. The most traded stocks by volume were WEMABANK (94.0m units), UBN (78.9m units), and ZENITH (22.1m units) while SEPLAT (₦519.9m), ZENITH (₦500.2m), and UBN (₦418.2m) led by value.

Across sectors that we cover, performance was mixed as 3 out of 6 indicators closed in the green. The Insurance index led gainers, up 2.2% due to buying interest in NEM (+9.5%), AIICO (+3.3%), and LINKASSURE (+10.0%). Similarly, the Consumer Goods and Oil & Gas indices rose 0.4% and 2bps respectively following price appreciation in GUINNESS (+7.3%), DANGSUGAR (+2.4%), and OANDO (+0.3%). Conversely, the AFR-ICT index led the laggards, down 1.4% on account of losses in MTNN (-2.9%). Likewise, the Banking and Industrial Goods indices fell 0.8% and 3bps respectively on the back of sell-offs in ACCESS (-3.6%), STANBIC (-1.0%), and WAPCO (-0.7%).

Investor sentiment, as measured by market breadth (advance/decline ratio), weakened to 0.8x from the 1.7x recorded previously as 18 stocks gained against 23 decliners. LINKASSURE (+10.0%), MEYER (+9.8%) and PRESTIGE (+9.8%) were the top gainers while DAARCOMM (-8.7%), WEMABANK (-8.1%) and UPL (-7.8%) were the top decliners. We expect the equities market to close in the red for the week. However, opportunities for bargain hunting exist. 

Market Statistics for Wednesday, 31st March 2021 

Source: Afrinvest