Bears claw deeper into investor’s grieving wounds   

5th June, 2020

The domestic bourse extended its yesterday's bearish performance into today's session, after the ASI dipped further by
115bps to close at 25,020.72 points. The bearish performance resulted from declines in a number in mid/large cap stocks including but not limited to; BUACEMENT (-544bps), NB (-455bps), GUARANTY (-245bps) and DANGCEM (-204bps). In the absence of significant cross deals like those witnessed yesterday, activity level dropped further as total volume and value traded slipped 20.61% and 52.51% respectively. Similarly, gains recorded in the first three trading sessions of the week could not save the domestic bourse from a negative weekly close as losses recorded in the last two trading sessions offset initial gains. The index lost 0.98% WoW, courtesy of declines in the Industrial goods (-3.14% WoW), Banking (-1.81% WoW), Insurance (-0.67% WoW) and Oil & Gas (-0.63% WoW) sectors. On the flip side, the Consumer goods sector emerged as the lone gainer for the week, rising 0.26% WoW.               

What will shape the market tomorrow? 

The equities market witnessed mixed sentiment in the week, with the Bulls controlling the trading sessions at week start while profit taking were recorded at week end. With the index trading in the over bought region of the 14 day RSI, we expect some level of corrections upon resumption next week, while stability is expect to be restored as the week progresses.       

Reporting for EasyKobo on Friday , 05 June 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited   

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