Investors become prisoners in their own web-of-fear, and Bears take complete advantage   

16th June, 2020

Extending yesterday's bearish performance, the Nigerian equities market continued on its downward slope, shedding
9bps to close the day at 24,930.88 points, while the YTD performance worsened to -7.12%. The negative performance resulted from losses in MTNN (-86bps) and ZENITHBANK (-62bps), which eroded gains in BUACEMENT (+160bps) and UBA (+78bps). Activity level at the domestic bourse again closed lower, as total volume and value traded declined by 15.68% and 1.47% respectively. Similarly, the market breadth worsened to 0.59x from the 0.64x recorded yesterday, as 13 stocks closed higher while 22 stocks closed under.                  


What will shape the market tomorrow? 

Declines across sectors once again pushed the domestic market to a negative close as the Industrial sector
(+1.03%) emerged as the lone gainer for the day (thanks to capital appreciation in BUACEMENT). However, with the declines recorded in the last four sessions, we expect a number of fundamentally sound stocks to start seeing renewed interest as investors seek to take advantage of the low prices. We also expect activity level to improve tomorrow as South Africa resumes from the one-day public holiday.            

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