25th September, 2019

The ASI continued on a downward slope, extending its days of decline by one to settle at 27,283.05bps. The index dropped 25bps resulting from losses in UAC-PROP (938bps), GUINNESS (-296bps), ZENITHBANK (-135bps), DANGCEM (-130bps), and MTNN (-72bps). Correspondingly, the YTD loss worsen to -13.20% as the bearish trend persist. The domestic bourse however, saw improved transaction size as volume and value traded increased significantly to 462.31m units (vs 154.03m units previously traded) and N7.92b (vs N2.83b traded yesterday). NB, NESTLE and ACCESS dominated market turnover accounting for 70.61% of value traded. Market breadth also improved to 0.80x (vs 0.25x recorded yesterday) as 13 stocks gained while 15 declined. 

What will shape the market tomorrow? 

Barring the negative returns in the two most capitalized stocks; DANGCEM (-130bps) and MTNN (-72bps) the ASI would have recorded a positive d/d performance. With most indicators coming in stronger in today's trading session (evidenced by most sectors closing higher, improved market breadth and increased transaction size), we expect the market to witness renewed interest tomorrow as investors take position in fundamentally sound stocks that have declined in recent sessions.

Reporting for EasyKobo on Wednesday , 25 September 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited