Negative outlook persists as NSE index pares by 0.25%


Proceedings in the equities market remained bearish, as the All Share Index (ASI) inched lower for the fifth consecutive session by 0.25% to 40,150.55 points.
Consequently, investors lost N35.8bn as market capitalization fell to N14.5tn. Profit taking in ETI (-2.2%), NIGERIAN BREWERIES (-0.7%) and DANGSUGAR (-2.5%) were the major drags to today’s performance. Nonetheless, activity level was mixed as volume traded fell 4.8% to 266.7m units while value traded rose 14.3% to N4.7bn. The top traded stocks by volume were IKEJAHOTEL (45.8m) – which has maintained the top spot for the second consecutive trading session after the NSE lifted the suspension on trading of the stock on Monday- while ACCESS (30.4m) and FIDSON (27.2m) followed closely. NESTLE (N2.2bn), GUARANTY (N598.7m) and ZENITH (N560.0m) were the top traded stocks by value.
Sector performance was largely bearish as 4 of 5 indices under our watch trended southwards. The Oil & Gas index was the only gainer appreciating 0.1% on account of gains in MRS (+4.9%). On the contrary, the Consumer Goods index shed the most, down 0.5%, following losses in NIGERIAN BREWERIES (-0.7%) and DANGSUGAR (-2.5%) while the Insurance index fell 0.3%, as a result of sell pressures in LINKASSURE (-4.4%) and AIICO (-4.6%). Similarly, the Banking and Industrial Goods indices declined 0.2% and 0.1% respectively due to profit taking in ETI (-2.2%), FCMB (-4.8%), CAP (-2.9%) and NASCON (-0.2%).
Investor sentiment as measured by market breadth (advance/decline ratio) softened to 0.5x from 0.6x recorded the preceding trading session as 15 stocks advanced compared to 28 stocks that declined. The top performers were IKEJAHOTEL (+9.8%), MRS (+4.9%) and FIRSTALUM (+4.6%) while UACN (-8.5%), CHAMS (-5.0%) and CILEASING (-4.9%) were the worst performing stocks.