After closing positive last week, Nigerian stocks in yet another flip-flop performance close trade Monday negative with benchmark index dipping 0.91 percent as against 1.66 percent appreciation recorded previously to settle at 36,584.44 points. Year-to-date gain moderated to 36.1 performance as market capitalization contracted N115.9 billion to settle at N12.6 trillion.
Monday’s negative close was largely attributed to losses in DANGECEM (-4.2%), which more than offset gains in GUARANTY (+3.0%), NIGERIAN BREWERIES (+1.4%) and ETI (+2.3%).
Without losses in DANGCEM, the market would have gained 0.5 percent. However, activity level improved as volume and value traded surged 55.7 percent and 30.5 percent to settle at 368.4 million units and N6.3 billion respectively.
Performance across sectors was mixed as two of five indices closed negative. The banking index advanced the most, up 0.8 percent due to price appreciation in GUARANTY (+3.0%) and ETI (+2.3%). Likewise, the consumer goods index expanded 0.7 percent due to renewed interest in NIGERIAN BREWERIES (+1.4%) and FLOURMILLS (+8.7%).
On the flip side, the industrial goods index declined the most, down 2.3 percent due to losses in DANGCEM (-4.2%) and WAPCO (-0.9%). In the same vein, the insurance index slid 0.9 percent on account of price depreciation in MANSARD (-4.9%). The oil & gas index closed the day flat.
Investor sentiment as measured by market breadth (advancers/decliners’ ratio) declined to 1.6x (from 2.1x recorded last week Friday). The best performing stocks today were FLOURMILL (+8.7%), TRANSCORP (+6.0%) and HONYFLOUR (+5.0%), while the worst performing stocks were VITAFOAM (-5.0%), MANSARD (-4.9%) and SCOA (-4.7%).
Whilst Monday’s market performance is largely attributed to losses in DANGCEM, the positive market breadth suggests investors are sourcing for bargain in stocks that had previously declined. Hence, we envisage an uptick in market performance in sessions ahead.
In the NASD OTC exchange, five counters traded with total volume and value of transactions closing at 1.1m units and N7.7 million respectively. WAMCO (+5.8%) closed in the green while AFRILAND (-9.2%) and CSCS (-1.5%) closed in the red. AG MORTGAGE BANK and NDEP closed the day flat.
Frontpage December 16, 2019