Stock market opens on negative note on Monday as the all share index nosedived 16 basis points. The domestic bourse closed in the red, starting the week on a bearish note as DANGCEM (-1.6%), UBA (-4.6%) and FBNH (-3.3%) pushed the All Share Index (ASI) 16bps lower to settle at 29,518.85 points.
Consequently, investors’ wealth reduced by N17.7 billion as market capitalisation closed at N11.1 trillion while YTD return further declined to -6.1%. In the same vein, activity level weakened as volume and value traded shed 4.6% and 12.2% to 224.2 million units and N1.8 billion respectively. The top traded by volume were SOVRENINS (45.7 million units), CHAMS (36.8 million units) and UBN (26.2 million units) while GUARANTY (N503.3 million), NESTLE (N350.1 million) and UBN (N178.4 million) led top traded by value.
Performance across sectors was mixed albeit positively skewed as 3 of 5 indices under our coverage advanced today. The Consumer Goods index led gainers, up 1.3% due to gains in NIGERIAN BREWERIES (+6.3%) and DANGFLOUR (+9.5%). Similarly, the Industrial Goods and Insurance indices advanced 0.6% and 0.2% respectively on the back of price appreciation in CCNN (+5.6%), AIICO (+2.9%) and REGALINS (+4.0%). On the flipside, the Oil & Gas and Banking indices shed 0.1% apiece due to sell-offs in OANDO (-1.0%), UBA (-4.6%) and FBNH (-3.3%).
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.5x from 3.5x on Friday as 25 stocks advanced against 17 decliners. DANGFLOUR (+9.5%), FIRSTALUM (+9.4%) and CADBURY (+8.9%) were the top advancers while ABCTRANS (-10.0%), AGLEVENT (-9.7%) and NIGERINS (-9.1%) declined the most.
“Following the negative performance and weakened investor sentiment, we expect sustained low activity this week barring any major economic events. Our outlook remains bearish, but we do not rule out bargain hunting towards the end of the week as witnessed last week”, Afrinvest said.
