Ironically hump day became pit day for the Nigerian Bourse   

7th August, 2019

The Nigerian bourse extended its downtrend to two consecutive trading days after depreciating 42bps d/d due majorly to losses in ZENITHBANK -139bps and DANGCEM -179bps, with the latter causing a 37bps decline in the last 15mins of trading. Market activity measured by volume and value went south, dropping 25% and 48% respectively with MTNN accounting for 33% of Turnover. Market breadth remained negative at 0.65x with 11 advances and 17 declines.

What will shape the market tomorrow? 

Excluding the end of session dip in DANGCEM, the index was relatively flat. As such, activity in the large cap names on the bourse continues to determine the direction of the index. However, with the dearth of market catalysts, we do not see any respite for the bourse tomorrow. Most of the stocks on the premium board and main board of the Exchange are trading at year-lows, thus, we do not rule out the possibility of bargain hunting across some of the fundamentally sound counters.

Reporting for EasyKobo on Wednesday , 07 August 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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