8th October, 2019

The Nigerian Equities Market continued its downtrend, dropping 21bps in today's session to close at 26,809.92bps. The local bourse traded above its opening point for most part of the day, as investors took position in fundamentally sound stocks that declined in recent sessions. However, late sell offs in DANGSUGAR (-286bps), UBA (165bps), GUINNESS (-122bps) and MTNN (-115bps) drove the index south at market close, increasing the YTD loss to -14.70% against the -14.52% recorded yesterday. Conversely, volume and value traded increased significantly by 22.56% and 68.69% respectively.  Market breadth for the day came in at 0.86x with 12 advances against 14 declines. 

What will shape the market tomorrow?

Although the broader index recorded a negative d/d performance, key indicators however came in positive in today's session. With bellwether stocks enjoying positive investor patronage and all sectors closing higher except the Consumer Goods (-0.09%) sector which was negatively impacted by declines in DANGSUGAR (-286bps) and GUINNESS (-122bps), we expect the positive momentum to reflect in the performance of the ASI tomorrow, barring negative price movements in heavyweight stocks.

Reporting for EasyKobo on Tuesday , 8 October 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited