Price appreciation in MTNN (+1.5%), STANBIC (+2.3%) and UBA (+3.0%) buoyed positive performance in the local bourse as the benchmark index increased 40bps to 28,563.87 points. As a result, market capitalisation increased ₦59.8bn to ₦15.0tn and YTD return stood at 6.4%. Activity level varied as volume traded declined 4.7% to 311.3m units while value traded rose 11.0% to ₦4.7bn. The most traded stocks by volume were UBA (72.4m units), ZENITH (27.2m units) and UACN (22.2m units) while ZENITH (₦568.2m), UBA (₦506.8m) and GUARANTY (₦472.6m) led by value.
Performance across sectors was bearish as 4 of 6 indices under our coverage closed in the red. The Insurance index lost the most due to sell-offs in WAPIC (-9.1%). Similarly, losses in OANDO (-0.9%) and INTBREW (-3.0%) dragged the Oil & Gas and Consumer Goods indices lower by 7bps and 6bps respectively. Similarly, the Banking index declined 3bps following sell pressures in ZENITH (-0.7%) and FBNH (-0.8%). On the other hand, gains in MTNN (+1.5%) and WAPCO (+2.0%) pushed the AFR-ICT and Industrial Goods indices up by 0.8% and 0.2% respectively.
Investor sentiment as measured by market breadth (advance/decline ratio) rose to 1.8x from the 0.1x recorded previously as 21 stocks gained against the 12 that declined. UACN (+8.3%), UNIONDAC (+8.0%) and FCMB (+8.0%) were top gainers while WAPIC (-9.1%), UAC-PROP (-3.7%) and GLAXOSMITH (-3.6%) led the laggards. We expect the market to close the week on a bearish note
Market Statistics for Thursday, 22nd October 2020
|Market Cap (N’bn)||14,929.87|
|Market Cap (US$’bn)||38.7|
|NSE All-Share Index||28,563.87|
|Daily Performance %||0.4|
|WTD Performance %||(0.3)|
|MTD Performance %||6.5|
|QTD Performance %||6.5|
|YTD Performance %||6.4|
|Daily Volume (Million)||311.3|
|Daily Value (N’bn)||4.7|
|Daily Value (US$’m)||12.2|
But as at close of trading on Wednesday, the NSE Market Capitalisation shed N113 billion from N14.983 trillion to N14.870 trillion. The demand for Equities drastically reduced on the trading floor of the NSE, as the market reacted to the prevailing tensed security situation arising from the hijacked #EndSARS protests in Lagos, resulting in the loss of lives and vandalisation of private and public owned properties. The lull in the market, undoubtedly, was not unconnected with the disposition of most investors, who rather than investing, showed more concern about the safety of their investments, as well as observing the government’s next line of action in handling the lingering security situation. The NSE All-Share Index also declined by 0.75% from 28,665.82 points to 28,449.49 points.
According to the Director-General of NECA, Mr. Timothy Olawale, “Protest is legal and a fundamentally guaranteed right of Nigerians to draw government’s attention to the need to take drastic action as regards reforms in all areas of our national life. However, it is important that the economy should not be brought to its knees in the process. The economy is in tatters, facing the threat of a second recession and unemployment rising to an unmanageable level, the need to stop the slide is not only urgent, but important. A consequential effect of the hindered capacity of businesses to function is the higher unemployment rate, further reduction in disposable income of those left in employment, heightened insecurity with the risk of hoodlums hijacking the peaceful protest among others.”
The Lagos Chamber of Commerce and Industry (LCCI) estimated that the protests has cost the economy over N700 billion (about $1.8bn in losses). According to the President of LCCI, Mrs. Toki Mabogunje, her group was concerned about the negative impact of the development on business activities and said, “These actions have been at great cost to the economy and the welfare of Nigerian citizens. It should be noted that our economy is still reeling from the shocks of the COVID-19 pandemic and struggling to recover from its devastating effects.”