Home Finance Bargain hunting drives mild gain at Stock market

Bargain hunting drives mild gain at Stock market

by Business News Report

Away from our expectation last week, the bulls took the market by the horn as investors hunted for bargains. Accordingly, the All-Share Index rose 10bps w/w to 38,943.87 points. Meanwhile, YTD loss remained unchanged at -3.3% and market capitalisation rose ₦11.1bn w/w to ₦20.3tn. However, trading activity slowed as average volume and value traded fell 40.0% and 17.8% w/w to 171.2m units and ₦2.2bn respectively. The top traded stocks by volume were ACCESS (75.5m units), UNIVINSURE (58.8m units), and WEMABANK (53.7m units) while NESTLE (₦2.0bn), MTNN (₦1.4bn), and ZENITH (₦726.6m) led trades by value.

Performance was strongly negative across our sector coverage this week as 5 out 6 indices closed in the red. Reversing last week’s gain, the Oil & Gas index lost 3.4% w/w due to sell-pressure on ETERNA (-9.4%) and SEPLAT (-6.5%). Trailing the biggest loser, the Banking and Insurance indices waned 0.8% and 0.6% w/w respectively on the back of sell-offs in ZENITH (-0.8%), ACCESS (-2.2%), MBENEFIT (-6.5%), and AIICO (-4.0%). In the same vein, the Consumer and Industrial Goods indices lost 0.2% w/w apiece following price decline in GUINNESS (-3.2%), DANGSUGAR (-2.3%), and WAPCO (-4.0%). However, the AFR-ICT index was the only gainer, up 0.8% w/w as investors took position in MTNN (+1.4%). 

Investor sentiment waned this week, as market breadth (advance/decline ratio) weakened to 0.6x from 0.8x in the previous week as 20 stocks gained against 36 losers. The top performing stocks for the week were UCAP (+11.3%), NNFM (+9.6%), and MORISON (+9.4%) while SCOA (-18.5%), TRANSCOHOT (-10.0%), and IKEJAHOT (-9.5%) led the laggards. In the coming week, we expect a mixed performance on the back of extended bargain hunting and weak investor sentiment. 

Related Posts