Stock Market Decline Persist to 7th Consecutive Session as ASI down 0.7%

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Nigeria’s equity market declined by 0.7% at the close of trade on Tuesday, June 11, to settle at 30,099.83 points following losses in DANGCEM (-2.1%), NIGERIAN BREWERIES (-1.7%) and DANGSUGAR (-4.4%).

Consequently, market capitalisation fell N97.9bn to close at N13.3tn while year-to-date loss further worsened to -4.3%.

In terms of trading activity on the local bourse, volume traded declined 5.6% to 233.5m units while value traded rose 1.0% to N3.5bn.

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WAPIC with (50.3m units) exchanged by investors, ZENITH (28.2m units) and COURTVILLE (25.2m units) emerged as the top three traded stocks by volume while MTNN (N1.5bn), NIGERIAN BREWERIES (N764.2m) and ZENITH (N566.5m) led the top trades by value.

Performance across sectors remained largely bearish as all major indices closed in the red, with the exception of the Insurance index which advanced by 0.5% due to demand in NEM (+2.4%) and WAPIC (+2.5%).

Conversely, the Industrial Goods index led decliners down 1.1% following price depreciation in DANGCEM (-2.1%) and CUTIX (-2.7%). The Oil & gas index trailed, shedding 0.8% on the back of losses in MOBIL (-3.8%).

In the same vein, the Afrinvest ICT and Banking indices declined 0.7% and 0.2% respectively as investors exited positions in MTNN (-0.7%), UBA (-2.0%), and ZENITH (-1.5%). Finally, NIGERIAN BREWERIES (-1.7%) and DANGSUGAR (-4.4%) marginally pulled the Consumer Goods index 2bps lower.

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.6x from 0.8x recorded the previous day as 16 stocks advanced against 25 decliners. CHIPLC (+10.0%), UAC-PROP (+10.0%) and ABCTRANS (+7.1%) were the best performing stocks while CUTIX (-11.2%), CCNN (-10.0%) and COURTVILLE (-9.1%) led laggards.

The bearish sentiment in the market is expected to persist in the near term says analysts at Afrinvest.