Bullish mid cap stocks fight with widespread negativity in large cap stocks- causes ASI to dip albeit marginally   

25th March, 2020

Despite the positive movement in a number of mid/large cap stocks, like UBA (+909bps), WAPCO (+440bps), FBNH (+256bps) and GUARANTY (+118bps), the ASI fell marginally by 5bps to close at 21,729.48 chiefly due to price decreases in MTNN (-291bps) and TOTAL (-10.00%). Market activity once again declined as total volume (223.07m units vs 330.10m traded yesterday) and value (N2.24bn vs N3.57bn recorded yesterday) traded dropped by 29.39% and 37.28% respectively while the market breadth remained positive, closing at 2.86x as 20 stocks gained while 7 declined.

What will shape the market tomorrow?
The ASI closed south majorly due to the decline in the second most capitalized stock (MTNN). However, in spite of the attractiveness of the current price levels to new investors willing to invest for mid/long term period, as well as opportunity for existing investors to average down their cost, the domestic bourse however remains fragile in the face of uncertainties in the global and macro economy hence the possibility of sell pressure exist in the short term. 

Reporting for EasyKobo on Wednesday , 25 March 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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