9th December, 2019

The ASI kicked off the week with a bearish performance, extending its loosing streak to 6 consecutive sessions as the presence of large sellers dominated trading today. The index closed at 26,681.31bps, 65bps below its opening point due to negative price movements in FBNH (-376bps), GUARANTY (-301bps), CCNN (-208bps) and DANGCEM (-142bps) among others. The Consumer goods sector which emerged as the best performing stock last week (+1.71%) experienced profit taking on some of the gains made, with the sector dropping 0.13% in today's session. Total value traded rose slightly by 0.45% thanks to the 12.5m units cross deal in DANGCEM at an average price of N140.00. Similarly, the equities market breadth for the day closed significantly lower at 0.18x, with just 5 stocks gaining against 28 stocks that declined.   

What will shape the market tomorrow? 

The Nigerian equities market has continued to experience significant profit taking action, as investors continue to sell down stocks that moved higher in previous sessions - especially the Banking and Industrial stocks that benefited the most during the short rally. We however believe that current price levels remain attractive for new mid/long term investors to take position, thus we expect  to see some bargain hunting tomorrow.

Reporting for EasyKobo on Monday , 09 December 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited