Equity Market Review: A bearish start to the week ~United Capital
The local equities market started the week on a negative note, as the Nigerian Stock Exchange (NSE) All-Share Index lost 0.3 percent in the previous day, closing at 24,753.92 points.
Consequentially, the Year-to-date (YTD) return widen to -7.8 percent and investors lost N38.0 billion in value, as market capitalization closed at N12.9 billion.
In terms of market activity levels, the total volumes and value traded decreased by 34.4 percent and 28.6 percent, to 124.7 million units and N1.3 billion respectively.
Analysing the performance by sector, four out of the five sectors under our coverage closed negative. Notably, the Industrial Goods (-1.5 percent) sector was the largest loser, amid price declines in stocks like BUACEMENT (-2.3 percent) and CUTIX (-9.1 percent). The Insurance (-0.9 percent) sector followed suit, dragged by losses in AIICO (-3.0 percent) and LAWUNION (-4.7 percent). Also, the Banking (-0.6 percent) sector lost points, due to GUARANTY (-1.7 percent) and UBA (-0.8 percent). The Oil and Gas (-0.5 percent) sector was the last loser, as ARDOVA (-5.1 percent) and OANDO (-2.0 percent) declined. On the other side, the Consumer Goods (+2.1 percent) sector was the sole gainer, driven by a 7.7 percent gain in NESTLE.
Overall investors’ sentiment was downbeat, evident by a market breadth of 0.4x – 11 stocks advanced while 26 stocks declined.
In today’s trading session, we believe general sentiments in the local bourse will be mixed, given the tepid expectations of the soon approaching H2-2020 earnings season.