27th August, 2019
Yesterday's bearish performance extended into today's trading session after the ASI depreciated 32bps to settle at 27,602.77bps due to losses in SEPLAT (-982bps), DANGCEM (-120bps) and TOTAL (-879bps) among others. MTNN gained 149bps as investors scramble for position in the stock that is to be added to the MSCI frontier index. Market activity increased today as total volume and value traded rose significantly by 16.04% and 94.11% respectively with MTNN, GUARANTY and DANGCEM accounting for 52.24%, 15.38% and 7.60% of total turnover. A total of 13 stocks advanced against 23 declines as market breadth settled at 0.56x.
What will shape the market tomorrow?
The market remained in the red despite a late minute rush in MTNN as sell offs on other counters drove the index south. In the absence of positive catalyst to buoy investor's confidence in the market, we expect another bearish performance tomorrow. However, we cannot overlook the possibility of position taking on some of the fundamentally sound stocks that now trade at discounts to their fair values (DANGCEM, GUARANTY, and ZENITH among other).
Reporting for EasyKobo on Tuesday , 27 August 2019 in Lagos, Nigeria
Source: Vetiva Capital Management Limited