21st December, 2020

It was a positive start to the week once again as the ASI rose  174bps to close at 37,443.40 points. Large-cap DANGCEM (+998bps) stood out among the gainers, whilst OANDO (+987bps), MANSARD (+978bps) and NEM (+968bps) also helped lift the bourse, whilst Banking names such as ZENITHBANK (-202bps), FBNH (-141bps) and ACCESS (-117bps) dragged the NSEBNK index to a negative close (-105bps). Meanwhile, losses in Oil and Gas names ETERNA (-989bps) and ARDOVA (-524bps) failed to drag the NSEOILGAS index into the red (+76bps), thanks to OANDO’s performance. In terms of market activity, the week began on a mixed note, as total volume of shares traded remained flat from Friday’s performance, while turnover came in 24.14% weaker at 3.3 billion. Notably, for the third straight session, DANGCEM, GUARANTY and ZENITHBANK were the dominant names in the market, accounting for 58.56% of market turnover. Finally, sentiment appeared more mixed, as market breadth worsened to 0.92x with 25 gainers and 23 decliners.                                       

What will shape the market tomorrow? 

We expect a more mixed trading session tomorrow as investors continue to monitor the situation regarding the spike in Coronavirus cases and the threat of further disruptions to economic activity. Whilst we expect investors to continue snapping up attractive counters, whilst profit taking will likely persist in the banking space.

Reporting for EasyKobo on Monday ,21 December 2020 in Lagos, Nigeria

Source: Vetiva Capital Management Limited