Profit taking drags benchmark index… ASI down 14bps

Today, investors profit taking in market bellwethers – WAPCO (-9.7%) GUARANTY (-0.7%) and DANGSUGAR (-3.4%) pulled the benchmark index down 0.1 per cent to 32,108.30 points as market capitalisation fell N16.7 billion to 11.7 trillion while YTD loss worsened to -16.0 per cent. However, activity level trended higher as volume and value traded rose 200.8 per cent and 236.4 per cent to 450.1 million and N9.4 billion respectively. ZENITH (288.3m units), FBNH (41.0m units) and GUARANTY (N33.7m units) were top traded by volume while ZENITH (N6.9bn), GUARANTY (N1.3bn) and DANGCEM (N344.4m) were top traded stocks by value.

Performance across sectors was largely bearish as 4 of 5 indices under our coverage closed in the red. The Banking index was the sole gainer up 0.2% following buy interest in UBA (+2.6%) and ZENITH (+0.6%) despite marginal sell-offs in GUARANTY (-0.7%). On the flipside, the Industrial Goods and Insurance indices led decliners, down 2.3% and 2.1% respectively due to price depreciation in WAPCO (-9.8%), NEM (5.3%) and CONTINSURE (-4.7%). Similarly, the Oil & Gas and Consumer Goods indices shed 0.2% and 0.1% respectively following sustained sell pressures in SEPLAT (-0.3%),  DANGSUGAR (-3.4%) and  CHAMPION (-4.6%).

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.1x from 0.6x as 18 stocks advanced compared with 27 decliners. NIGERINS (10.0%), NPFMCRBK (+9.6%) and FIDSON (+8.9%) were today’s outperforming stocks while AIICO (-9.9%), WAPCO (-9.8%) and MBENEFIT (-9.8%) led laggards. We believe the bearish performance observed today will be sustained in tomorrow’s session despite the improvement in market breadth. We hence retain our bearish market outlook over the near term.

Market Statistics Wednesday, 7th November 2018

Market Cap (N’bn)                                           11,722.0

Market Cap (US$’bn)                                            38.3

NSE All-Share Index                                     32,108.30

Daily Performance %                                            (0.1)

Week Performance %                                          (1.1)

YTD Performance %                                          (16.0)

Daily Volume (Million)                                        450.1

Daily Value (N’bn)                                                  9.4

Daily Value (US$’m)                                             30.7