Sustained sell-offs drag benchmark Index… NSE ASI down 0.9%

The bearish performance of the local bourse was extended into the second consecutive session as sell pressures in bellwethers – NESTLE (-4.1%), DANGCEM (-0.6%), and ZENITH (-2.4%) dragged the benchmark index 0.9 per cent lower to 37,606.23 points while YTD return fell to -1.7 per cent. Accordingly, investors lost N123.8 billion in value as market capitalisation decreased to N13.6 trillion. However, activity level strengthened as volume and value traded rose 4.2 per cent and 43.1 per cent to 254.8 million units and N2.6 billion respectively. The top traded stocks by volume were MULTIVERSE (100.0m), ZENITH (16.5m) and GUARANTY (13.0m) while GUARANTY (N515.9m), DANGCEM (N481.3m) and ZENITH (N403.3m) were the top traded stocks by value.

Across sectors, performance was largely bearish as 4 of 5 indices under our watch closed in the red. The Industrial Goods index led laggards, down 1.5% as investors booked profit in DANGCEM (-0.6%) and WAPCO (-3.7%). The Banking index trailed, down 1.3%, following sell-pressures in ZENITH (-2.4%) and GUARANTY (-1.0%). In the same vein, losses in MOBIL (-5.0%), NESTLE (-4.1%) and DANGSUGAR (-0.6%) dragged the Oil & Gas and Consumer Goods indices 1.2 per cent and 1.1 per cent lower respectively.  On the flip side, the Insurance index was the lone gainer for the day, rising 0.6 per cent on the back of buying interest in CUSTODIAN (+8.6%) and NEM (+4.6%).

Investors’ sentiment as measured by market breadth (advance/decline ratio) softened to 0.5x from 0.8x recorded in the preceding session as 13 stocks advanced against 28 that declined. Today’s top performing stocks were PRESTIGE (+9.4%), ROYALEX (+9.1%) and REDSTAREX (+8.3%) while JAIZBANK (-10.0%), CORNERST (-9.4%) and MAYBAKER (-8.9%) were the worst performers. In line with our expectation, market performance was bearish today and we expect this to be sustained in subsequent sessions as investor sentiment stays soft. However, we do not rule out the possibility of some end of the week bargain hunting as investors take advantage of attractive market prices.

Market Statistics Tuesday, 3rd July 2018

Market Cap (N’bn)                                   13,622.5

Market Cap (US$’bn)                                     44.5

NSE All-Share Index                              37,606.23

Daily Performance %                                     (0.9)

Week Performance %                                   (1.0)

YTD Performance %                                    (1.7)

Daily Volume (Million)                                254.8

Daily Value (N’bn)                                          2.6

Daily Value (US$’m)                                      8.6

Source Afrinvest