Profit taking drags Benchmark Index… NSE ASI down 4bps 

Profit taking in SEPLAT (-3.3%), INTEBREW (-2.1%) and UBN (-4.8%) dragged the performance of the All Share Index today to close at 40,772.26 points while YTD return fell to 6.6 per cent. Resultantly, investors wealth reduced by N5.9 billion as market capitalisation depreciated to N14.7 trillion. Similarly, activity level dipped as volume and value traded decreased by 85.6% and 60.4 per cent to 230.2 million units and N4.3 billion respectively. Top traded stocks by volume were GUARANTY (67.4m), FIDELITY (14.9m) and FBNH (14.7m) while top traded stocks by value were GUARANTY (N3.0bn), ZENITH (N245.6m) and FBNH (N182.7m).

Performance across sectors was largely bearish as 2 indices under our coverage closed in the green while 3  closed red. The Banking and Insurance indices were the only gainers today appreciating 0.2 per cent and 0.1 per cent due to price gains in ETI (+2.6%), GUARANTY (+0.6%) and CUSTODIAN (+0.8%). On the flip-side, the Oil & Gas index led losers, down 1.7 per cent on the back of profit taking in SEPLAT (-3.3%). The Industrial and Consumer Goods indices followed, falling 1.0 per cent and 0.4 per cent respectively on account of sell-offs in WAPCO (-2.0%), INTEBREW (-2.1%) and NIGERIAN BREWERIES (-0.7%).

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.3x from 1.9x recorded yesterday as 24 stocks advanced while 18 stocks declined. JAIZ BANK (+10.0%), OANDO (+9.7%) and SKYE (+5.2%) were today’s top performers while UBN (-4.8%), SOVERENINS (-4.3%) and HMARKINS (-3.6%) led laggards. Despite the drag in today’s performance, we believe bargain hunting opportunities still exist however we do not rule out the possibility of further profit taking on some stocks in subsequent trading sessions.

Market Statistics Wednesday, 18th April 2018

Afrinvest