Market performance slide on sustained sell pressure… ASI down 0.3%

Today, the local bourse sustained its bearish performance on the back of sell-offs in ZENITH (-1.0%), WEMABANK (-4.4%), and LIVESTOCK (-9.8%). Consequently, the All-Share Index fell 27bps to 39,219.61 points, YTD loss worsened to -2.6% while market capitalisation declined ₦55.8bn to ₦20.4tn. Trading activity improved as volume and value traded rose 41.4% and 28.1% to 425.7m units and ₦2.0bn. The most traded stocks by volume were TRANSCORP (111.1m units), CHAMS (57.5m units), and HONYFLOUR (31.6m units) while ZENITH (₦243.6m), MTNN (₦209.2m), and GTCO (₦190.3m) led by value.

Across sectors under our coverage, performance was bearish as 4 indices closed in the red while the Industrial Goods and AFR-ICT index was flat. The Consumer Goods index led laggards, down 1.9% due to sell-offs In DANGSUGAR (-0.8%), FLOURMILL (-0.5%), and INTBREW (-1.1%). Similarly, the Oil & Gas and Banking indices fell 0.4% apiece, on account of price depreciation in OANDO (-2.9%), ZENITH (-1.0%), and WEMABANK (-4.4%). Finally, profit-taking in AIICO (-3.9%) and WAPIC (-3.9%) dragged the Insurance index lower by 0.3%. 

Investors sentiment, as measured by market breadth (advance/decline ratio), weakened to 0.6x from 1.1x recorded in the previous session as 15 stocks gained while 26 stocks lost. TRANSCOHOT (+10.0%), HONYFLOUR (+9.7%), and MORISON (+9.7%) led the gainers while NIGERIAN BREWERIES (-9.9%), LIVESTOCK (-9.8%), and LASACO (-9.7%) led the losers. We expect market performance to tilt in the bearish direction, as investors continue to search for optimum return.

Market Statistics for Tuesday, 31st August 2021