Stock Market Resumes Negative Sentiment after Salah Break

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Equities or stock market trading after the two-day Muslim holiday resumed on a bearish note as lead market indicator- the All Share Index (ASI) dipped 1.3% to settle at 30,527.07 points on Thursday, June 6.


The losses were majorly due to decline in share prices of Dangote Cement that dropped by 5.4%, Guaranty Trust Bank (-1.9%) and UBA (-2.4%).


Subsequently, investors lost N179.1bn in value as market capitalisation fell to N13.4tn while year-to-date (YTD) loss worsened to -2.9%.

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Activity level was mixed as volume traded declined 11.7% to 217.2m units while value traded advanced 106.7% to N5.8bn.


The top traded stocks by volume were GUARANTY (82.8m units), ZENITH (36.0m units) and UBA (8.0m units) while GUARANTY (N2.6bn), MOBIL (N906.1m) and ZENITH (N735.0m) were the top traded by value.


Performance across sectors was largely bearish as four of the six major indices trended southwards. The Insurance index recorded the largest decline, down 3.2% following sell pressures in NEM (-8.1%) and MANSARD (-3.5%).


The Industrial Goods index trailed, declining by 2.8% due to profit taking activities in DANGCEM (-5.4%).


In the same vein, sustained sell pressures in GUARANTY (-1.9%) and UBA (-2.4%) dragged the Banking index 0.7% lower while losses in GUINNESS (-2.1%) and DANGFLOUR (-1.2%) pulled the Consumer Goods index into the red, down 0.1%.


On the flip side, the Oil & Gas index closed positive, up 2.0% following bargain hunting in SEPLAT (+2.7%) and CONOIL (+4.6%) while the AFR-ICT index inched higher by 0.3% due to gains in MTNN (+0.3%).


Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.4x from 0.5x recorded on Monday as 23 stocks advanced against 16 decliners.


The best performing stocks were JBERGER (+9.9%), CHAMPION (+8.1%) and ACADEMY (+7.4%) while THOMASWY (-10.0%), CAPOIL (-8.7%) and COURTVILLE (-8.3%) led laggards.


Following the continuous bearish performance, analyst at Afrinvest maintain a bleak outlook for the market.


According to them, their unchanged stance is as a result of investors still in search of economic stimulus to spur investment in equities.

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