13th March, 2020

The ASI halted its losing streak (having lost for the last five straight sessions), moving higher by 17bps to close at 22,734.07bps. The positive performance was majorly due to mild recoveries in the Banking sector, as UBA (+982bps), ZENITHBANK (+968bps) and GUARANTY (+497bps) closed higher, mitigating the impact of losses recorded in SEPLAT (-10.00%), CADBURY (-10.00%), ACCESS (-769bps) and NB (-572bps). There was also a slight increment in market turnover, as total value traded appreciated marginally by 4.17% despite a 30.81% drop in total volume traded for the day. However, the bears dominated market sessions for the week, as the index dropped by 13.49% WoW, while worsening the YTD performance to -15.30% as a result of massive declines in the BANKING (-26.15% WoW), Consumer goods (-14.79% WoW), Oil and Gas (-8.51% WoW), Insurance (-5.66%) as well as the Industrial goods (-5.41% WoW) sectors.

What will shape the market tomorrow? 

The domestic bourse was significantly battered during the week as a result of overhanging uncertainties in the global and macro-economic environment, leading to most fundamentally sound stocks trading at multi-year lows. However, with most counters trading at deep discounts to their expected fair value in the face of massive sell pressure during the week, we expect a number of stocks to enjoy positive investor patronage at the start of the coming week.  

Reporting for EasyKobo on Friday , 13 March 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited