TRADER's report - June 6   

June 6 (Lagos) - The market continued its losing streak today for the fourth straight day after the two day break, shedding 131bps. 

Analysts at Vetiva, saw activity level more than double today with turnover printing at N5.8 billion compared to Friday (N2.8 billion). The banking sector (d/d -66bps) accounted for the larger portion of trades with the four Tier1 banks making up the Top 5 trades by volume and GUARANTY was the highest traded counter both in Volume and Value. 

The bourse was down over 240bps at midday but continued interest in DANGCEM (+240bps) – despite the mark down today for Dividend - tapered the loss to 131bps. Of note is the reversal of losses we saw in SEPLAT and OANDO on Monday, gaining 2.68% and 5.26% today respectively. YTD market return is -2.87%.

What will shape the market tomorrow? 

With the first two trading session of the new month returning negative, there will likely be a continuation tomorrow as the market lacks any catalyst that might turn around the negative trend. We believe the high volatility experienced by the global oil price is connected with the recent fortune of the market. 

With prices trending lower, this volatility will filter into the equity space. However, most counters are trading at decent levels that are attractive for medium to long term investors to take position.  

On the Bid Cart: 

CHAMPION continued its gaining streak for the second day running with a 8.11% gain to settle at N1.20. We believe the renewed interest is connected to its attractive entry price after the brewer went on a thirteen session down trend (-29%) from the 14th of May till the end of the month when it hit its five year-low of N1.01. Investors making a call on the counter should do so with some caution. 

On the Offer Cart:  

NEM was sparingly offered today but closed 8.07% under at N2.05 which is in line with the negative sentiment around the sector which also closed 2.05% lower. The stock closed 18.9%  below its month high of N2.53. Though the stock is one of the leaders in the industry, analysts at Vetiva Capital Management ltd in Victoria island believe the sector is still developing and investors with long term horizon can take position. 

reporting for on Thursday, June 6 2019 from Lagos, Nigeria

Source - analysts at Vetiva Capital Management Ltd in Victoria Island, Lagos
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