Stock Market Remains Downbeat prior to pre-Airtel Listing

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Nigeria’s stock market has extended losses to the fourth consecutive day. This is even as the market readies for its second big deal of the year, namely the Airtel IPO scheduled for Friday, July 5.

Investor sentiments remained unstimulated as the bearish performance on Thursday saw the All Share Index (ASI) close 30 basis points lower

The day’s performance was influenced by sell pressures in GUARANTY (-1.7%), PRESCO (-10.0%) and UBA (-0.8%).

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ASI thus closed at 29,300.09 points while year-to-date loss worsened to -6.9%.

Accordingly, investors lost N33.1bn in value as market capitalisation decreased to N12.9tn.

Activity level was mixed as volume traded dipped 24.1% to 108.4m while value traded rose 5.0% to N2.0bn.

The top traded stocks by volume were WAPCO (50.0m units), ACCESS (23.3m units) and UBA (20.2m units) while WAPCO (N552.7m), GUARANTY (N248.0m) and ZENITHBANK (N230.2m) led by value.

Across sectors, performance was mostly bearish as 4 of 6 indices under coverage closed in the red.

The Industrial Goods index led gainers for the second consecutive day up 0.4%, as a result of gains in CCNN (+3.5%), WAPCO (+2.3%) and CUTIX (+9.2%).

The Consumer Goods index sustained gains, rising 0.3% on account of buy interest in DANGSUGAR (+4.1%) and NASCON (+4.1%). On the flip side, the Insurance index led laggards, declining 0.4%, due to losses in WAPIC (-8.5%) and SOVRENINS (-8.7%).

The Oil & Gas index trailed, losing 0.3% on the back of losses in OANDO (-2.5%) while sell-offs in GUARANTY (-1.7%) and UBA (-0.8%) as well as MTNN (-4bps) drove the Banking and AFR-ICT indices down 0.1% and 4 bps respectively.

Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.3x from 0.7x recorded in the preceding session as 20 stocks advanced against 16 that declined.

The top performing stocks were CUTIX (+9.2%), ACADEMY (+8.8%) and LIVESTOCK (+8.5%) while PRESCO (-10.0%), SOVRENINS (-8.7%) and WAPIC (-9.5%) were the worst performers.