2nd April, 2020

The ASI which traded under for most part of today's session, was saved from late recoveries in DANGCEM (+993bps) and FLOURMILL (+548bps), mitigating the impact of declines recorded in NB (-927bps), MTNN (-569bps), ZENITHBANK (-351bps) and GUARANTY (-142bps) among others. Based on the significant spike in DANGCEM, the index ended the session up marginally by 10bps to close at 21,121.20 point. Similarly, there was an improvement in market activity as total volume and value traded increased significantly by 65.55% and 62.10% respectively, as trades in ZENITHBANK, GUARANTY and DANGCEM dominated market turnover. The market breadth however closed in the red for another session as 7 stocks closed higher against 19 stocks that closed under (market breadth: 0.36x).

What will shape the market tomorrow? 

Going by the declining market breadth and over hanging fundamental issues in the micro and global space, we expect the market to exhibit another bearish pattern tomorrow despite the attractiveness of a number of fundamentally sound stocks. Having lost in three of the four trading sessions so far this week, we expect another negative WoW performance at the end of tomorrow.

Reporting for EasyKobo on Thursday , 02 April 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited