19th September, 2019

The local bourse could not sustain the positive performance recorded yesterday as the ASI dropped 13bps to close the day at 27,646.15bps. The negative performance recorded today resulted from profit taking action on some medium/large cap stocks that gained yesterday such as ACCESS (-325bps), GUARANTY (185bps), ZENITHBANK (-181bps) and UBA (-157bps). Similarly, activity slowed down significantly with volume traded declining by 35.21% to 245.43m units against 378.80m units traded yesterday, while value traded also diminished by 68.79% from N5.35b to N1.67b. Market breadth remained positive settling at 1.18x, with 20 advances against 17 declines. 

What will shape the market tomorrow? 

From the trading patterns exhibited at the local market in recent weeks, we can deduce that a cautious trading strategy is being adopted by investors with some days of bargain hunting while other days are dominated by profit taking action. The bearish trend might continue in tomorrow’s session, if we see aggressive sellers in high cap counters, which will lead to a negative w/w performance.

Reporting for EasyKobo on Thursday , 19 September 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited