Banking stocks drag performance… ASI sheds 0.1%

Price depreciation in Banking stocks – FBNH (-2.5%), UBA (-1.9%) and GUARANTY (-0.5%) – pulled the All-Share Index down 8bps to 27,547.56 points. Consequently, YTD return fell to 2.6% while market capitalisation shed ₦12.2bn to ₦14.3tn. Activity level advanced as volume and value traded rose 24.9% and 36.2% to 168.1m units and ₦2.2bn respectively. The most active stocks by volume were ZENITH (49.0m units), GUARANTY (17.1m units) and UCAP (15.6m units) while ZENITH (₦953.2m), GUARANTY (₦494.8m) and ACCESS (₦124.4m) led by value.

Across sectors, performance was mixed as 2 indices lost, 1 gained and 3 closed flat. The Banking and Consumer Goods indices lost, down 49bps and 1bp following price declines in FBNH (-2.5%), UBA (-1.9%), GUARANTY (-0.5%) and VITAFOAM (-3.2%). On the other hand, the Insurance index was the lone gainer, up 22bps on the back of price appreciation in WAPIC (+10.0%) and AIICO (+2.5%). Finally, the Oil & Gas, Industrial Goods and AFR-ICT indices closed flat.

Investor sentiment as measured by market breadth (advance/decline ratio) improved to 0.9x from the 0.6x recorded in the previous trading session as 12 stocks advanced relative to 13 decliners. The best performers were UAC-PROP (+10.0%), WAPIC (+10.0%) and CILEASING (+7.4%) while LAWUNION (-4.8%), JAPAULOIL (-4.8%) and COURTVILLE (-4.5%) led the laggards. We maintain our bearish outlook on the equities market pending the corporate earnings release of tier-1 Banking stocks. However, we note that there are opportunities for bargain hunting.

Today’s Corporate Actions

Highlights of Some Corporate Earnings Disclosures Announced Today:

United Capital Plc (Unaudited FY:2019): Revenue fell 7.2% Y-o-Y to ₦8.59bn; However, the company’s profit after tax grew 14.6% to ₦4.97bn from ₦4.33bn in FY:2018.

Market Statistics for Tuesday, 18th February 2020 

Market Cap (N’bn) 14,347.4
Market Cap (US$’bn) 39.9
NSE All-Share Index 27,547.56
Daily Performance % (0.1)
WTD Performance % (0.8)
MTD Performance % (4.5)
QTD Performance % 2.6
YTD Performance % 2.6
Daily Volume (Million) 168.1
Daily Value (N’bn) 2.2
Daily Value (US$’m) 6.0

Source: Afrinvest

Categories: Finance,News,Stock Market

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