22nd June, 2020

Extending last week bearish performance, the Nigerian equities market started the new week with another negative movement as the ASI tumbled 19bps to close at 24,779.26 points. The bearish performance came on the back of losses in FLOURMILL (-343bps), NB (-263bps) and BUACEMENT (-227bps) among others, which eroded gains in NESTLE (+772bps) and WAPCO (+45bps). Similarly, activity level for the day saw a set back as total volume and value traded diminished by 28.63% and 34.41% respectively, with trades in GUARANTY, OKOMUOIL and NESTLE  dominating market turnover. Market breadth (0.42x) once again closed in the red, as 11 stocks closed higher while 26 stocks closed in the red.                 

What will shape the market tomorrow? 

Sentiment remained weak at the domestic bourse, evidenced by the negative market breadth (0.42x) coupled with sell pressure seen across sectors. In the absence of any positive catalyst capable of lifting sentiment, we expect a similar trading patter tomorrow, though the possibility of bargain hunting cannot be overruled due to recent declines.          

Reporting for EasyKobo on Monday , 22 June 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited