Aug 13 (Lagos) - Following the two consecutive sessions of capital depreciation, the domestic market returned to the positive territory, thanks to gains in large cap stocks such as
SEPLAT (+10.00%) and
AIRTELAFRI (+920bps) as well as bargain hunting in some other mid cap stocks which neutralized the impact of declines in
ACCESS (-229bps),
BUACEMENT (-64bps) and
ZENITHBANK (-59bps).
Consequently, the ASI advanced by 104bps to close the day higher at 25,141.48 points. However, compared to the overall upward movement seen in activity level yesterday, total volume and value traded for today settled in opposite directions, as total volume traded declined marginally by 0.75% while total turnover for the day increased significantly by 54.76% (due to large crosses in GUARANTY,
OKOMUOIL and
AIRTELAFRI which accounted for 62.30% of total market turnover).
Similarly, the bullish performance filtered across board, with the market breadth improving from the 0.94x recorded yesterday to 1.64x (18 gainers against 11 decliners).
What will shape the market today?
We attribute today's upward movement to the bargain hunting activities in large cap stocks as the domestic bourse erased previous losses. We expect a mixed trading session tomorrow, with continued bargain hunting in some counters and profit taking by short term players in other tickers which rose today.
Stocks to Watch
On the Offer Cart: In spite of the bullishness witnessed in today's session, the Banking sector (-0.36%) closed the day in the red emerging as the worst performing sector for the day, largely due to declines in
ACCESS (-229bps),
ETI (-120bps),
FBNH (-98bps) and
ZENITHBANK (-59bps).
reporting for easykobo.com on Wednesday, Aug 13 2020 from Lagos, Nigeria
Source - analysts at Vetiva Capital Management Ltd in Victoria Island, Lagos. All opinions, views and forecasts expressed in above article are those of analysts at Vetiva Capital Management Ltd in Victoria Island, Lagos.