19th June, 2020

Gains in BUACEMENT (+628bps), TOTAL (+146bps) and MTNN (+52bps) were cut short by declines in DANGCEM (-647bps), OKOMUOIL (-448bps) and ACCESS (-74bps) as the ASI declined further by 43bps to end the week at 24,826.75 points. Activity level for the day however closed mixed, as the marginal rise in total volume traded (2.05%) did not lead to a rise in market turnover, as the total value traded reduced by 9.06%. Similarly, it was a bearish week at the domestic bourse, as the ASI closed south in four of the five trading sessions, leading to a 1.41% drop WoW while the YTD performance worsened to -7.51% (vs -6.18% posted a week ago). However, performance across sectors varied for the week, as the Industrial (+2.24%) and Consumer goods (+1.81%) sectors closed the week higher, while the Oil & Gas (-4.85%), Insurance (-3.11%) and Banking (-3.06%) sectors closed in the red.                 

What will shape the market tomorrow? 

The market was largely dominated by the Bears during the week, as a number of mid/large cap stocks closed the week lower. With the consistent declines recorded this week, we anticipate a rebound next week on the back of cheap valuations of a number of fundamentally sound stocks, in the absence of any external shock that can again weaken investors' confidence.        

Reporting for EasyKobo on Friday , 19 June 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited